JPM raises ProSieben to 'overweight' amid bidding competition

** J.P.Morgan upgrades ProSiebenSat.1 Media PSM to 'overweight' from 'neutral', citing expected consolidation benefits amid a bidding war and German state stimulus for the broadcaster

** JPM sees a low but non-zero probability that MFE MFEA or PPF may raise their current offers before the acceptance period ends on August 13

** "After closing, we believe the shares will be well supported by MFE buying on any weakness", JPM analyst Daniel Kerven says

** Pro7 has advised against a bid from PPF, calling that "inadequate from a financial point of view", and also against May's takeover bid from MFE

** JPMorgan says Pro7 can return to mid-single digit organic growth after "the significant de-rating", seeing an opportunity to buy at "compelling valuation"

** ProSieben's diversified revenue streams from digital content and commerce support growth prospects, Kerven adds

** There is also a potential upside from German stimulus boosting TV advertising and ProSieben's earnings, the broker says