ITV (LSE:ITV) shares are rising strongly once more following a bumpy few months. Issues on the broadcaster’s manufacturing division, blended with issues over the well being of the UK economic system and route of rates of interest, weighed on investor sentiment late final 12 months.

But it surely’s on the entrance foot once more Thursday (6 March) after a strong set of buying and selling numbers for 2024. These confirmed adjusted pre-tax income up 19%, at £472m.

At 72.90p per share, ITV’s share price was final round 5% larger on the day. And if dealer forecasts show right, it can proceed to rise through the subsequent 12 months. However how real looking are the Metropolis’s estimates?

One other 17% rise?

As with all share, a variety of opinions exist the place ITV’s share price is heading. One notably bleak forecast has the business broadcaster slumping 18% from present ranges, to 60p per share. On the different finish of the dimensions, essentially the most bullish estimate has the FTSE 250 firm leaping 58% to 115p.

General, Metropolis analysts are overwhelmingly optimistic on ITV shares for the following 12 months. The common price goal amongst eight brokers with scores on the inventory is 85.57p per share, marking a 17% premium to right this moment’s price.

Nonetheless low-cost

What suggests vital price rise potential from present ranges? When mixed with predicted dividends, a lump sum funding right this moment might yield a big complete investor return. Metropolis analysts expect a 5.1p per share money reward in 2025, leading to an enormous 6.9% dividend yield.

Encouragingly, ITV shares proceed to commerce at an honest low cost to their long-term common. This theoretically gives added scope for the broadcaster to rise in worth.

Metropolis analysts assume annual earnings will improve 4% in 2025, to eight.99p per share. This leaves the agency with a price-to-earnings (P/E) ratio of 8.1 occasions, a way beneath the 10-year common of 9.9 occasions.

ITV’s price-to-book (P/B) ratio of 1.5 in the meantime, can also be properly beneath the long-term common (because the chart exhibits).

With its ahead dividend yield additionally above the 5.5% common for the previous decade, I believe the enterprise might proceed attracting curiosity from worth hunters.

Quietly assured?

But an extra rise in ITV shares is on no account a finished deal. Promoting revenues might crumble once more if financial situations worsen. Tighter advertising restrictions on unhealthier meals from October may additionally hit advert gross sales exhausting.

Intense competitors from different broadcasters, to not point out US streaming giants like Netflix and Amazon‘s Prime service, might additionally weigh on efficiency.

However on the entire, I’m optimistic that ITV’s share price might proceed rising. With demand for content material steadily rising, and artistic strikes within the US over, I imagine ITV Studios can hold shining (income right here reached document highs in 2024).

I’m additionally inspired by the breakneck momentum of ITVX. It’s been Britain’s quickest rising streaming platform through the previous two years and drove ITV’s digital advert revenues 15% larger final 12 months.

Lastly, the agency’s cost-cutting programme additionally continues to surpass expectations. It delivered £60m of financial savings in 2024, beating estimates by a cool £10m. I believe ITV shares are price severe consideration right this moment.