Damning report on BSkyB 'Sky will miss 10 million 2010 target'

摘要

BSkyB's share price wasn't helped in June by a major report from investment bankers Morgan Stanley, which downgraded Sky stock to "underweight", and marked down their expectations from typically 530p a share, to a dramatically revised 480p a share ("Sky has a limit", 1 June). And when one remembers that Morgan Stanley's previous target share price was 610p, then the new price is all the more shocking. The affect on the market was predictable, with Sky's share price tumbling 10p on the day. However, Morgan Stanley's reasoning for this damming report is quite straightforward, and senior analyst Sarah Simon pulls no punches in her warnings. "Our change in view and in valuation is based on the belief that competition for BSkyB will increase materially," she says, and then lists three troubling anxieties.