Analyst John Janedis and the team at Wells Fargo Securities report that ad spending is up broadly for the television industry as the advertising marketplace recovers. The tight scatter market is proving particularly lucrative to the networks.
“Broadly TV advertising continues running on all cylinders, driven by a tight scatter market and recovering ad spending. We expect the double digit increases in the scatter market (vs. the upfront) to continue through the summer, with overall cable/TV network ad revenues approaching double digit gains,” Janedis said in a brief email blast to investors.
“We still favor stocks with television advertising exposure heading into earnings, and remain positive on Outperform rated Discovery Communications, News Corporation and CBS Corporation,” the Wells Fargo Securities team said.