Shares in ITV, Britain’s biggest free-to-air commercial broadcaster, rise 2.5 percent, outperforming a 0.5 percent higher FTSE 100, as several brokers raise their price targets for the stock following strong earnings on Wednesday.
Numis Securities, JPMorgan Cazenove, Citigroup, UBS, Berenberg and Nomura all increase their target prices for the company on encouraging outlook.
“We continue to be very positive on the story in spite of the strong share price performance YTD (+26 percent vs MSCI EU +8 percent). ITV NAR (net advertising revenue) is performing relatively well in a difficult economic environment which leaves potential upside for when the economy improves,” JPMorgan says in a note.
JPMorgan, which has an “overweight” rating on the stock, raises its target price target to 97 pence from 86 pence.
UBS ups its price target to 100 pence from 85 pence, saying that ITV’s 2012 advertising is stronger than forecast.
UNS notes that ITV shares trades on 10.4 times its 2102 earnings and 10 times on 2013, against 11.8 times and 10.3 times for the sub-sector.
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