Broker tips: ITV, Wood Group, Paper and packaging stocks

10th Oct 2014 13:02

UBS has upped its target price for broadcaster ITV from 210p to 230p and repeated its 'buy' recommendation, highlighting catalysts for the stock in the near term.Retransmission fees, M&A and a "compelling valuation" were cited as reasons behind the UBS' positive investment case on ITV. Specifically, the bank reckons that US media giant Liberty, which bought a 6.4% stake in ITV in July from BSkyB, could potentially look to increase its ownership.In spite of a well-received trading update the previous session, Wood Group's stock pulled back sharply on Friday after Numis Securities downgraded its rating on the oilfield services and engineering group from 'add' to 'hold' due to oil-price headwinds.With the price of Brent crude nearing the $89-a-barrel mark on Friday morning, down over a fifth from its June peak, Numis highlighted that as a result of recent acquisitions Wood Group has become "much more levered to oil prices than we had appreciated, particularly in the US onshore market", said analyst Sanjeev Bahl.Higher prices and favourable exchange rates may lead to higher 2015 forecasts for European paper and packaging makers, according to broker Jefferies International.The broker said DS Smith, Mondi and Smurfit Kappa all had strong balance sheets, giving them increased financial flexibility, although the latter pair were its top picks in the sector.