BSkyB downgraded by broker
BSkyB suffered a dramatic 5% fall in its already depressed stock market price on Jan 9, following a “sell” note from brokers Goldman Sachs.
Goldman Sachs’ note downgraded BSkyB from ‘neutral’ to ‘sell’, which prompted an immediate fall of 24.25p, driving Sky’s share price down to 450.75p.
The bank’s note advised investors that: “The stock is at close to a four-year high P/E premium to the sector and market, despite heading into a trading period where its perceived attributes of defensiveness and growth appear most at risk."
Goldman has cut its price target from 500p to 457p. Analysts say that the satellite broadcaster has outperformed the rest of the media sector, leaving BSkyB “priced for perfection” despite concerns that its traditionally defensive nature will not be enough to save it from the impact of global recession. There is also concern that its upcoming subscriber numbers will reflect a slowdown in terms of new subscribers.
BSkyB will reveal their Q2 (to Dec 31st) trading results on Jan 28.