Deutsche Bank has reinstated its coverage of Sky with a ‘hold’ rating and 1,000p target, saying that “investors can afford to wait” amid material near-term uncertainties regarding the company’s future. The bank previously had a ‘buy’ recommendation on the stock with a 1,100p target.
The bank said: “Near-term, the new group faces choppy waters: UK Premier League rights renewal, Sky Italia without Champions League from next season and increased competition in the UK triple play/quad play market. These are material for earnings and we still don’t have full financial and operational disclosure on Sky Italia.”
The share price of UK supermarket chain J Sainsbury was under pressure on Thursday after Shore Capital downgraded its rating from ‘hold’ to ‘sell’, saying investors should expect a “material contraction in profitability”.
The broker said it sees “few attractions in holding Sainsbury’s shares”. It expects a 30% “reset” in earnings per share and is forecasting three years of declines in Sainsbury’s profits and dividends.
Citigroup said it is “backing off for now” at Wolseley as it lowered its stance for the building and plumbing products group from ‘buy’ to ‘neutral’.