Channels regulation could weigh on BSkyB shares

Proposed rules that would force BSkyB to wholesale its channels at predetermined rates could impact its share price by as much as 4%, according to Morgan Stanley.

The investment bank said that Sky is performing strongly operationally, but that “reminders of Sky’s regulated status are, however, typically unhelpful to the share price.” Even factoring in the possible effects of new regulation, Morgan Stanley is forecasting large earnings per share growth at BSkyB of 21%, 19% and 29% respectively over the next three years.


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