Analysts at American investment bank Goldman Sachs have given a boost to media company shares, saying that some stock sell-offs have been overdone.
Goldman put BSkyB on its “conviction buy” list, saying that although the ad market is expected to deteriorate moving into 2009, the satellite broadcaster only has limited exposure to this with just 8% of its revenues coming from advertising.
It also upgraded Trinity Mirror to “buy” from “sell”, adding that its assets “might prove attractive to potential bidders at the current low valuation”.
Goldman added that the valuation gap between Trinity and regional newspaper group Johnston Press was one of the highest in the sector.
Johnston Press yesterday announced a year on year fall of 9.5% in advertising revenues for the first half of 2008, with total group revenue was down 6.3% to £293.1 million (see Johnston Press Reports Fall In Ad Revenues).
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