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The launch of TalkTalk's new broadband TV service could apply short-term pressure on the service provider's share price, it has been claimed.

Broker Morgan Stanley believes there are financial risks associated with TalkTalk TV, which is based on the upcoming YouView service, reports Proactive Investors.

Consumers will be able to watch TV content through a set-top box connected to the internet, giving them a range of new viewing options. 

But Morgan Stanley believes rival broadband provider BT stands to be the biggest winner from the YouView launch.

As such, it has reduced its TalkTalk target price to 170 pence from 190 pence.

"Although cost-cutting since the demerger [from Carphone Warehouse] has exceeded expectations, negative earnings revisions from YouView could lead to share price underperformance in the near term," the broker stated.

The launch of YouView - a joint project involving BT, TalkTalk, Arqiva and the main free-to-air broadcasters - has been delayed a number of times due to technical and commercial issues.

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