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ITV (first half results 26 July)
ITV hit the news recently for poaching easyJet’s CEO as tis new boss. However, the interest in the firm goes beyond changes at the top. The stock has recently been upgraded by Morgan Stanley, on the basis that it is, at 11.5 times current earnings, the cheapest of the European media stocks. Advertising is set to improve as the firm moves through its second quarter, and while ad revenues aren’t quite the ‘be all and end all’ that they once were, it is still a vital part of the investment case for ITV. Morgan Stanley boosted its target price to 230p.
The decline through June seems to have run its course, with a rally off the 174p level. However, we need to see a move above 186p to create a new higher high, and then move on to take out 200p. Below 174p the shares target the November low around 160p.
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