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STV - 18% increase in forecast for next year

November 2013

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • STVG
  • Price:
  • 317.5p
Quite a bullish share price target upgrade from broker Liberum following our main write up last month. The broker has raised its profit forecast on the back of rising expectations for the TV advertising markets. This year's eps forecast is lifted by 8% to 32.5p and next year’s by a whopping 18% to 42.8p. We didn't mention last month that there is also the prospect for a big win too if, at some point, broadcasters such as Sky and the cable operators agree to pay “retransmission fees.†At present these pay-TV operators can carry public sector broadcasters programming from ITV and STV channels for free (in fact ITV and STV have the ignominity of having to pay carriage)  but if retransmission consent fees are introduced, it ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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