It’s been a shaky couple of years for the ITV (LSE:ITV) share price. Since reaching its peak in 2021, shareholders have been patiently ready for administration’s aggressive multi-billion pound funding in content material creation and its new-ish ITVX platform to repay. But wanting on the newest outcomes, this may be simply across the nook. And with the inventory buying and selling at simply 7.7 occasions earnings, buyers may very well be about to witness a welcome surge.

With that in thoughts, let’s discover simply how a lot greater ITV’s share price might climb over the following 12 months.

Investments are beginning to ship

ITV’s income progress in 2024 was pretty mediocre. Nevertheless, contemplating the corporate’s studio phase was closely disrupted by the actor and author strikes, this wasn’t totally a shock. But whereas the highest line didn’t impress, the identical can’t be mentioned for underlying earnings.

The agency’s earnings have been up by double-digits on the again of margin growth pushed by a much bigger than anticipated £60m annualised saving in addition to a extra beneficial product combine. Consequently, administration has introduced its funding in ITVX is now on observe to interrupt even by the top of 2025, forward of the unique timeline.

Talking of ITVX, the ad-driven streaming service remains to be quickly increasing, with month-to-month lively customers now sitting at 14.3m. That’s simply over 20% of the British inhabitants, steadily catching up to BBC iPlayer’s recognition. Unsurprisingly, with the variety of viewers rising by 1.8m, complete streaming hours have elevated from 1.5bn to only shy of 1.7bn. And with extra individuals on the platform for longer, ITV has extra alternatives to serve high-margin digital adverts.

ITV’s share price forecast

Evidently, that is all reasonably constructive. So, what are analysts projecting over the following 12 months?

Proper now, probably the most optimistic forecast is for the ITV share price to rise to 105p by March 2026. In comparison with the place the inventory is buying and selling proper now, that’s a roughly 33% enhance. So investing £1,000 proper now might develop into £1,330 by this time subsequent 12 months.

Nevertheless, not everyone seems to be satisfied that ITV has confirmed itself but. Wanting into 2025, administration is definitely guiding for a slight hit to revenue margins because it plans to develop extra scripted reveals subsequent 12 months. These initiatives are certainly costlier to provide. However they’re additionally how the world loved blockbuster hits like Mr Bates vs The Publish Workplace.

One other profitable present of this scale might appeal to much more viewers to ITV’s streaming service. In fact, that’s far simpler mentioned than accomplished. And if 2025 proves to be a 12 months of duds, then the shares might really slide by 11% to 70p based mostly on extra pessimistic analyst opinions.

Time to purchase?

All issues thought of, I’m cautiously optimistic about what the long run holds. There are clearly no ensures, and ITV’s continued success will rely upon its capability to provide fashionable reveals that appeal to new viewers to its platform. That does add danger to an funding. However given its current observe report, administration appears to have its finger on the heartbeat for now.

My portfolio already has ample publicity to this sector, so it’s not a chance that I’m speeding to purchase proper now. However for buyers eager to capitalise on the rise of ITVX, now may be a wonderful time to take a more in-depth look.