Broker snap: Peel Hunt downgrades ITV to hold

15th Feb 2012 10:32

With shares in broadcaster ITV having gained steadily since mid-December, Peel Hunt thinks they are now up with events and downgrades the stock from buy to hold ahead of the company's full-year results at the end of the month.Shares closed yesterday's session at 78.5p, well above the 60-65p level seen in December the 52-week low of 51.65p reached in September."With much of the upswing in 2012 TV revenues now factored into our numbers for the year, given a boost by the Euro 2012 tournament in the summer, we believe the upside now looks limited in the absence of upgrades," said analyst Patrick Pau.Nevertheless, Peel Hunt says its remains positive about the company's underlying trading and its progress in its 'Transformation Plan'. The broker expects 1.6% growth in TV Broadcasting revenues for the year to £1.77bn, but suggests that the result could be forecasts after a strong Christmas schedule performance."The wild card remains an earnings per share-enhancing acquisition (now the company has eliminated its net debt) but we have not incorporated this into our investment thesis," Yau said.The broker leaves its target price at 183p.BC