ITV have come a long way from the troubling days of late 200, when the share price dipped below the 20p level, as concerns over the very existence of the company were being raised in the City as its shares struggled badly in tough market conditions. This makes today’s analytical note from Liberium, where they have placed a price target of 200p on the company, all the more impressive.
The broad change in sentiment towards the commercial television network can be highlighted by the 92% 'long' stance of our clients. Now that the company has a dividend yield of 2.10% and a market capitalisation of more than £5 billion, it has returned to many people’s radars as an acceptable investment.
The television and communications sector could become an interesting arena following the likely price war that will develop between network providers BSkyB and BT. The potential outcome here could well be lower prices and increased viewers, which would boost advertising revenue for ITV.
Today’s price action has seen the company break above the 20-, 50- and 100-day moving averages, and could well see the triggering of a number of momentum traders. ITV could certainly be worth watching over the coming months.