Satellite broadcaster Sky boosted by growth hopes

Discussion in 'Market News' started by Lily, Oct 14, 2015.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    Credit Suisse says market is underestimating Sky’s earnings potential

    Broadcasters are in the City spotlight, with an upgrade for Sky and positive comments on ITV.

    The satellite broadcaster’s shares are currently up 3p at £10.77 in a falling market, after Credit Suisse raised its recommendation from underperform to outperform on the basis its growth prospects are not being fully appreciated. In a hefty 288-page note on European broadcasters, the bank said:

    Our investment thesis for Sky is based on the medium-term earnings profile of the business, which is being underestimated by the market, in our view.

    Whilst longer-term structural issues remain, we see the potential for solid earnings per share momentum in the coming years due to the following factors:

    The Daily Telegraph is reporting that the BBC will not get into a bidding war for The Voice, raising suggestions ITV will pick up the show (ITV’s Talpa business produces the show).

    This follows comments from the Culture Secretary John Whittingdale that the BBC should not using taxpayers’ money to bid against ITV for rights. It also follows the announced departure yesterday of Danny Cohen, BBC’s long-standing Director of Television and a big believer in the BBC competing for audiences and programmes with ITV.

    Continue reading...

Share This Page

free forex signals