ITV plc

The £1.6 billion sale of ITV's Media & Entertainment division to Sky is expected to return approximately £950 million to shareholders — around 25p per share. The deal multiple of 5.6–6.4x EBITDA is in line with comparable transactions, and proceeds will meaningfully delever ITV Studios, positioning the remaining business for stronger long-term growth.

J.P. Morgan downgraded ITV to 'neutral' and cut its price target from 104p to 85p, citing a disappointing deal outcome. The bank flagged lower disposal proceeds, significant separation costs, and stranded Studios costs as key value destroyers, noting that macro uncertainty and Brexit-era headwinds hampered ITV's negotiating position.

Following the M&E disposal, ITV Studios is expected to operate with a leaner balance sheet at approximately 1.5x net debt to EBITDA. Broader earnings forecasts project a 26% increase over the next few years, suggesting the content production business retains strong organic growth momentum as a focused, standalone entity.

Technical and momentum indicators for ITV stock are firmly negative, with sell signals across both short- and long-term moving averages and a declining MACD. The share price has fallen approximately two-thirds from its 2015 highs, and analysts at J.P. Morgan see stranded Studios costs as a structural drag on profitability post-separation.

With a consensus price target of 87.50p against a current price of around 73.10p, analysts see approximately 19.7% upside. ITV's P/E ratio of 12.60x is in line with industry peers, its dividend yield stands at a compelling 6.96%, and a low beta suggests relative price stability ahead of the Sky deal completion.

ITV shares are trading near industry price multiples, leaving limited room for re-rating beyond peers. With the stock already reflecting its positive outlook, the risk/reward is unattractive at current levels. Short-term price forecasts point to further downside, with models projecting the share price drifting toward the mid-60p range by August 2026.