RE: Intelligent Insight21 Dec 2021 07:49
Agreed.
Anyway, here's the view for the media sector by JP Morgan re-iterated again going into 2022 :-
BUZZ – 'Stay on the road less travelled' – JPM picks four European media names for 2022
* J.P. Morgan expects another year of recovery and strong advertising growth in 2022, and remains bullish on value and cyclicals in European media sector
* It sees strong nominal GDP growth, increased competition and higher ad intensity across multiple sectors to boost global ad growth to double-digits.
* JPM's key picks within the industry are the world's biggest advertising company WPP , Britain's biggest free-to-air commercial broadcaster ITV , German broadcaster ProSieben and the world's biggest music label UMG.
* "Broadcasters and agencies remain unloved and under-owned", it says, seeing scope for further upgrades and a re-rating for WPP, ITV and ProSieben.
* UMG remains the best content story in media, and one of the most tangible plays on the metaverse, JPM says, adding that it prefers UMG over Believe given its catalogue and cheaper valuation.
* It points out that after 10 years of Netflix and a pandemic, TV advertising and margins are at record levels and structural concerns are demonstrably overstated.
* "2022 could also kick-start TV consolidation, bringing savings and strategic benefits", according to the broker
* JPM believes there is growing need for agencies' advice and execution and that their addressable market is growing.
Could be an interesting few trading days from now until the end of the year when all the American banks window dress their trading books ahead of 2022 !