Broker snap: Galvan rates ITV as 'buy' after launch of Encore channel

5th Feb 2014 10:52

Galvan Research and Trading has labelled television group ITV as a 'buy' on the back of the company's move into the pay-TV market with its new ITV Encore channel.ITV Encore, which will be shown exclusively on Sky's satellite and online platforms, is dedicated to British drama and initially will broadcast re-runs of shows previously transmitted on ITV's free-to-air channels."Drama has been a highlight of ITV schedules in recent years, with shows such as Broadchurch and Downton Abbey helping its main ITV free-to-air channel increase its share of viewing last year for the first time in a decade," said Ed Woolfitt, Head of Trading at Galvan.He said that ITV's diversification is "welcome" and "underlines the broadcaster's strength and diversity". Galvan has set a price target of 215p for the stock."Given that the company is a play on the UK economic recovery, the new Encore channel appears ideally timed to capture extra revenues from the consumer, while the ultra-solid fundamentals are also supported by the ongoing uptrend in the shares. Switch over and buy ITV," Woolfitt said.The shares were trading 0.9% higher at 196.9p by 11:17 on Wednesday.BC