Broker snap: Investec stays a seller of ITV on Q3 outlook

26th Jul 2012 10:54

Investec has reiterated its 'sell' rating and 60p target price for broadcaster ITV saying that the outlook for third-quarter net advertising revenues (NAR) is 'as bad as expected'.First-half figures were just above Investec's forecasts but the third-quarter outlook was "gloomy", the broker said in a research note on Thursday."We expect consensus to be more or less unchanged with lower TV NAR offset to some extent by better ITV Studios profit delivery, though we note our figures are slightly below consensus," said analyst Steve Liechti.ITV expects flat ITV Family NAR in the first nine months of the year with July down 10%, August down 11% and September flat to minus 5%."A lot still depends on final figures for Sept and trends into 4Q which remain unclear currently. Our fundamental view is unchanged - good management activity/actions, but we are negative on broadcast long term," Liechti said.Despite the comments, shares were performing well today, up 7% at 76.4p by 10:54.Bc