ITV has jumped 7% after a couple of positive notes on the broadcasting business.
House broker UBS has issued a buy note with a 37p price target, saying:
"While we believe the shares are fully discounting regulatory benefits and a cyclical recovery, we see strategic upside from a subscription model, the value of which could be enhanced by Ofcom's pay TV market review. The extension of debt maturities has reduced financial risks while management change and CRR newsflow could provide catalysts."
CRR is the mechanism that protects advertisers from ITV1 abusing its dominant position in the UK TV advertising market, and there is a growing feeling it could be relaxed. Meanwhile Ofcom is reviewing the UK pay TV market, which could lead to BSkyB having to offer its sport and film content to pay TV rivals.
Analysts at Royal Bank of Scotland have repeated their own buy recommendation on the business, with a 41p target, helping push the company's shares 2.25p higher to 34.25p.
