STV’s AGM update flags a better-than-anticipated advertising performance during Q1 and the expectation that the FIFA World Cup will help its Audience Division deliver H1 YoY revenue growth. STV Studios is working hard to offset industry headwinds and, although macro uncertainty remains a generic concern, the company continues to pursue a proactive approach to driving revenue and optimising its cost base. We believe that modest stock valuation multiples fail to capture its growth potential and strategic value, with our 12-month TP of 135p suggesting c.30% upside potential. BUY.