Goldman Sachs reiterates buy on ITV, trims target

14th Oct 2015 17:09

(ShareCast News) - ITV is an attractive asset for investors and stands to gain from the "robust" macroeconomic environment, but advertising sales will take a short-term hit after England's elimination from the Rugby World Cup, one of the world's most influential brokers said on Wednesday.Goldman Sachs said the company's advertising revenues would now expand by 4% in the fourth quarter, down from the 6% rise its analysts had pencilled in previously.For the full-year that ad sales were expected to see an increase of 5.6%, in line with the analyst consensus as compiled by the company itself.As well, the de-rating in US media was likely to cap multiples for ITV, Goldman said.As a result, the broker lowered its target price on the stock to 290p from 309p. Nevertheless, the firm still has attractive content ownership. Hence, it makes sense for Liberty Media to own a larger blocking stake, for example, the broker added.Goldman Sachs removed the shares from its Pan-Europe Conviction Buy List but reiterated its 'buy' recommendation.