ITV should be boosted by its planned purchase of The Voice producer Talpa Media, as well as improving adverting revenues.
That is the view of analysts at Liberum, who have raised their target price for the broadcaster from 310p to 330p. They said:
We upgrade our target price on ITV...to reflect the impact of the Talpa acquisition, which we see as a strategic positive and which drives the 5.8% increase to 2016 forecast earnings per share.
And on the advertising prospects:
Media buying feedback suggests ITV TV advertising revenues should be up just over 9% for the first half, just ahead of the market.
We upped our 2015 ITV advertising growth forecasts this morning from 5% to 5.5% but, if the commentary around the first half is correct, it suggests that the 5.5% could be conservative, implying less than 2% ITV advertising growth in the second half when ITV is showing the Rugby World Cup (in September) and the fourth quarter comparables are not particularly tough. Every 1% rise in the full year ITV advertising growth forecasts means a 2% plus growth in earnings per share forecasts.
But despite this optimism, the shares are currently down 3.2p at 267.3p after recent rises.
