WITH BIDS for the Premier League’s TV rights in, analysts were split this week over the potential damage or lack thereof that either winning the same package of games or losing games to BT could have on Sky.
“The Premier League rights auction has been a major overhang on the Sky share price but potentially we believe the outcome could be more benign than people expect,” wrote UBS analyst Polo Tang in a note this week.
“We also believe the growth at Sky could be more than people are expecting.”
Analysts at Citi wrote that as long as Sky retains its popular Sunday kick-offs, few of its estimated 4m sports subscribers would leave for BT or another provider.
However, research by Morgan Stanley found that a third of subscribers would switch if BT won the rights to 4pm Sunday kick-offs.
“We remain cautious given the risk around Premier League rights,” wrote Liberum analyst Ian Whittaker in a note this week.
Liberum continues to hold a sell rating on Sky stock with a target price nearly 12 per cent under its current market price.