STOCKS NEWS EUROPE-UTV Media rises on Investec upgrade

Shares in UTV Media (UTV.L) jump 17.2 percent as Investec ups its rating to "buy" from "hold" and ramps its target price up to 100 pence from 60 pence, citing the company's valuation, which it says has lagged its European peers.

The broker says UTV trades on a estimated price earnings of 6 times in 2010 "on what should be trough EPS in that year", adding it looks relatively low against the likes of ITV, which Investec rates as "sell", on around 50 times.

"Strong cost controls and focus on cash imply the business can trade through to 2010 without an equity issue," says Steve Liechti, Investec analyst, adding that he sees an EPS trough in 2010.

The broker prefers UTV currently to STV, which it rates as "hold" and is up 13.5 percent, "given the latter's opting-out strategy from the peak time ITV1 schedule, which could be harmful to audience in the mid term".

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