ITV PLC (LON:ITV), WPP PLC (LON:WPP) and Just Eat Takeaway.com NV (LON:JET) were among a group of firms receiving target price hikes from analysts at Barclays as the bank reassessed its view of the media, internet and e-commerce sectors.
In a note on Monday, Barclays upped its target price for ITV to 80p from 75p and retained their ‘equal weight’ rating as they issued forecasts for the broadcaster’s third quarter trading update, which is due on November 12.
The bank said it expected ITV to report a 13% decline in revenues for the three month period, comprising of a 10.5% fall in advertising revenue as well as a 22.5% decline in revenues from its content production arm, ITV Studios. Barclays added that they expected investors to focus on the outlook for the fourth quarter, given it is the “largest quarter” with large amounts of advertising during the festive period.
For WPP, Barclays raised their target to 825p from 800p and remained ‘overweight’ on the stock but estimated a 13% decline in net sales for the group’s third quarter and for organic growth trends to remain the key focus going forward.
Meanwhile, Just Eat was hiked to 11,350p from 11,230p and retained at ‘overweight’ as the bank forecast “strong continued trading” and that the risk was to the upside of their prediction of 35% growth in the third quarter.
Barclays was less positive for exhibition and business publishing group RELX PLC (LON:REL), which was reduced to 2,005p from 2,015p but remained at ‘overweight’ as the bank expected a trading update on October 22 to be eyed for any details on whether management can reassure over 2021 journal renewals with early indications of progress.
In lunchtime trading, shares in ITV were flat at 76.4p, while WPP was down 0.6% at 665.4p, Just Eat was 0.1% lower at 8,786p and RELX rose 0.5% to 1,702p.