Wednesday tips round up: ITV, GKN

29th Jul 2015 11:27

(ShareCast News) - There was a sense of déjà vu about GKN's latest acquisition, The Times' Tempus wrote, as it had similarities to the company's 2012 purchase of Volvo's aero engine division.If the new acquisition, Fokker, proves as successful as Volvo was, the shares are cheap while the prospects for future aerospace orders are good, the column said.Tempus said the Fokker purchase will lift aerospace from 30% to 35% of revenues. GKN shares have been weak partly because of concerns over aerospace, given the third profit warning from Rolls-Royce this month.But those concerns around the stock are overdone, and on 11 times earnings, the shares are good value, the above column said.Meanwhile the Financial Times' Lex column said broadcaster ITV has been touted as possible target for consolidation in the global media sector.Lex notes ITV's valuation has improved greatly in the five years since chief executive Adam Crozier took over, but said this was more likely due to anticipation of strong advertising venues.ITV is more of a consolidator, the column said, buying seven production companies since Crozier's appointment, pointing out the profitability of its content business.Lex said any buyers of European content might prefer RTL, Fremantle or Endemol, according to Deutsche Bank.