"The latest earnings figures are impressive, despite the distractions it has recently faced – we believe there looks to be real upside in the longer-term for BSkyB," he said.
NewsCorp announced it was dropping its bid for the broadcaster just hours after The Share Centre upgraded BSkyB to a "buy" earlier this month, and the escalating news hacking scandal has taken its toll on performance.
According to FE Analytics data, the stock lost 18.59 per cent between 4 and 12 July.
Performance of BSkyB and FTSE 100 over 1-yr
Source: FE Analytics
However, Raynor thinks the long-term outlook for the company remains positive, particularly in light of this week’s earnings figures.
The broadcaster reported a sharp increase in both profits and revenues compared with last year, with pre-tax profits soaring to more than £1bn and revenues rising by nearly £1bn to £6.6bn.
"Investors seeking growth will be pleased to see the company continuing to increase its customer base, which now stands at 10.3 million, despite the tougher economic environment," said Raynor.
"From an income perspective, the total dividend for the year is increasing by 20 per cent to 23.28p. The broadcaster has also announced a £750m share buyback programme which should help add stability to the share price."
Reports that BSkyB will share the live broadcasting rights with the BBC for Formula 1 motor racing live between 2012 and 2018 is also set to give the company a big boost.
"With Formula 1 audiences at a 10-year high, this is exciting news for the company," added Raynor.
According to FE Analytics data, BSkyB appears in the top-10 holdings of 12 funds in the IMA unit trust and OEIC universe, including the £285m CF Odey Opus fund, which has an 8.5 per cent stake in the company. The £2.9bn Fidelity Special Situations fund has a 5.7 per cent weighting to BSkyB – its third biggest holding.
Two investment trusts – Manchester & London and Fidelity Special Values – also hold the company in their top-10.