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ITV is a broadcaster that operates an array of production studios and facilities. Earlier this month, share price shed 10% when the company announced disappointing results in its trading update. Headline revenue was down 8% compared to the same period last year, as a result of the drop in revenue from the studios department.

Investors are concerned about the weak advertising outlook faced by the company, which is uncertain. Furthermore, the company’s proposal for further cost cutting will affect employee morale, exacerbating the issue. However, I see potential in the company.Share prices spiked back to original levels on Novemeber 25 following the news of a potential takeover bid.

Analysts are bullish about the stock, with a general Buy rating. Analysts see the stock rising by 20% over the next 12 months and the expected dividend yields sits at a healthy 6.8-7%. Coupled with a strong share buyback scheme, the stock proves to be a strong investment.