Shore Capital suggests that the shares of Scottish broadcaster STV (LON:STV) are trading on a ‘modest valuation’ despite the recovery in advertising and strong viewing figures.
Shore analyst Roddy Davidson kept his ‘buy’ recommendation on the shares following an update that despite acknowledging the challenges of Covid-19 also showed strong recovery.
‘We are very pleased to note the advertising recovery, strong viewing performance, and digital and production momentum,’ said Davidson.
‘We rate STV as a tightly managed, dynamic and entrepreneurial business with strong operational momentum and a clear and consistently executed strategy for accelerating growth.’
Davidson declared that the shares trading on 8.9 times 2020 earnings are very modestly valued, he continues to rate STV as a ‘conviction buy’.
