Analysts raise targets for Spanish broadcasters

Two influential sets of analysts have raised their ratings on Spain’s leading commercial broadcasters this week.

Investment banks Goldman Sachs and Credit Suisse both increased their target share prices for Antena 3 and Telecinco although Goldman is still recommending its clients sell Antena 3 stock. Spain’s incumbent free-to-air broadcasters have suffered the effects of a bitter advertising recession and increased competition from pay-TV and DTT upstart channels. Cumulative Spanish TV advertising revenue came in at about US$3.62bn (€2.52bn) last year compared with US$4.5bn a year earlier. Media buyer ZenithOptimedia forecasts 2010 revenues of US$3.67bn and 2011 revenues of US$3.81bn.