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Story Continues

ITV’s stock narrative has shifted recently, as the company’s price target remains steady at £0.80 per share while several key assumptions have adjusted. A slightly lower discount rate and slower revenue growth reflect both persistent caution and underlying confidence among analysts. Read on to see what is driving these changes and how you can stay informed as ITV’s story continues to unfold.

Analyst Price Targets don’t always capture the full story. Head over to our Company Report to find new ways to value ITV.

🐂 Bullish Takeaways

• JPMorgan maintained its Overweight rating on ITV shares, indicating continued confidence in the company’s longer-term value proposition.

• Analysts highlight ITV’s ability to navigate market conditions, pointing out its steady execution and efforts to maintain operational transparency.

🐻 Bearish Takeaways

• JPMorgan lowered its price target for ITV to 105 GBp from 112 GBp. This reflects some reservations around near-term growth prospects and challenges ahead.

• Concerns persist that ITV’s current valuation may already reflect much of the anticipated upside. Ongoing market caution continues to influence target adjustments.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!

• Comcast is reportedly in discussions to acquire ITV’s media and entertainment division, which could lead to significant changes within the UK’s broadcasting landscape.

• ITV has confirmed that it is engaged in early-stage talks with Sky Limited for a possible sale of its media and entertainment business, with a reported enterprise value of £1.6 billion. No agreement has been finalized.

• If a sale proceeds, it would include ITV’s terrestrial channels and streaming service ITVX, while ITV Studios, the production arm, would remain under ITV’s ownership.

• Negotiations are ongoing with several interested parties, including Comcast, but there is no certainty that any deal will ultimately be reached.

• Fair Value remains unchanged at £0.80 per share.

• The Discount Rate has decreased slightly from 7.25% to 7.15%.

• Revenue Growth has fallen modestly from 2.69% to 2.63%.

• Net Profit Margin has edged down from 6.27% to 6.15%.

• The future P/E ratio has risen slightly from 15.76x to 16.06x.

A Narrative is a simple, powerful tool that lets investors connect the story behind a company to the numbers, such as future revenue, earnings, and fair value. Available on Simply Wall St’s Community page, Narratives make it easy to see how a company’s outlook changes with new news or results. By tracking Fair Value versus Price, investors can decide when to buy or sell while updates flow in dynamically.

Ready for the full story? Read the original ITV Narrative to see why investors are following along for:

• Real-time updates as ITV’s digital transformation and media sale talks reshape market expectations

• Insights into how cost controls, global content growth, and digital partnerships impact future earnings and margins

• Key risks from advertising shifts, increased competition, and regulatory changes, plus how these affect ITV’s valuation and your next decision

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ITV.L.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Victoria’s Secret (VSCO) has caught the attention of investors following recent moves in its stock price. The past month has delivered a gain of 11%, while the past three months show a 69% jump. This reflects strong market interest.

See our latest analysis for Victoria’s Secret.

Victoria’s Secret has surged into the spotlight with momentum building over the past quarter. While the 90-day share price return stands out at nearly 69%, the stock still posts a negative total shareholder return of just over 1% in the past year. That recent burst of optimism suggests investors may be betting on a turnaround or re-rating of the brand as sentiment shifts from last year’s sluggish run.

If you’re watching this strong move and keen to see what else is unfolding across the market, now is a great time to broaden your search with fast growing stocks with high insider ownership

But with shares now well above most analyst targets and only a modest lift in annual revenue, the key question is whether Victoria’s Secret is now trading at a bargain or if the market has already factored in stronger future growth.

Compared to Victoria’s Secret’s last close price, the most widely followed narrative places fair value much lower, signaling the recent rally has pushed shares well above what consensus numbers support. The narrative sets a clear calculation for why this is the case.

The analysts have a consensus price target of $22.7 for Victoria’s Secret based on their expectations of its future earnings growth, profit margins, and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $27.0, and the most bearish reporting a price target of just $17.0.

Read the complete narrative.

Could a slowdown in earnings and a high projected profit multiple really justify the gap between narrative value and market price? The assumptions driving this calculation center on how the company will balance modest revenue growth with tighter margins in the coming years. See what’s behind the numbers.

Result: Fair Value of $22.7 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent tariff pressures and ongoing declines in mall traffic could still threaten Victoria’s Secret’s ability to sustain recent gains and margin improvements.

Find out about the key risks to this Victoria’s Secret narrative.

Our SWS DCF model puts Victoria’s Secret’s fair value at $48.49, which is well above the current share price. This suggests shares could be undervalued if the underlying cash flow assumptions play out. The key question is whether these longer-term projections can offset concerns about slower earnings growth.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Victoria’s Secret for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 925 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you want to test these numbers for yourself or craft your own perspective, building a personal narrative takes just a few minutes. Do it your way

A great starting point for your Victoria’s Secret research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Don’t settle for one idea when there’s a world of growth stocks and fresh trends waiting for you. Use the Simply Wall Street Screener to uncover unique opportunities that could boost your portfolio’s potential.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include VSCO.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com