Deutsche Bank upgrades Sky to 'buy' on online video hopes
Analysts at Deutsche Bank upgraded their rating for Sky from ‘hold’ to ‘buy’ and raised estimates for 2017 by 20% more than consensus.
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In a note to clients, Deutsche Bank said the FSTE 250 firm was the best positioned in Europe to capitalise on growth areas related to online video.
Deutsche Bank moved its price target for the stock from 1,000p to 1500p, and said Sky had underperformed against its media peers.
Analysts said the pay TV operator was set for 17% earnings per share growth over the next four years.
The bank said online video was accelerating growth, and suggested there might be a period of calm with rival BT.
“Sky is no longer constrained to the UK with underpenetrated German and Italian markets to pursue. Barriers to entry are getting higher with the complexities of delivering mobility and the step-up in Premier League costs,” Deutsche Bank said in a note.
Shares in Sky were up by 2.23% to 1102p at 0921 BST on Tuesday.