Brean Capital Downgrades Viacom (VIAB) to Hold; Merger with CBS Does Not Maximize Value
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Analyst Alan Gould commented, "We are lowering our rating on Viacom to Hold from Buy and our fair value estimate becomes $40 from a TP of $44, the expected value in our VIA/CBS scenario analysis. We are lowering our probability of a CBS/VIA merger to 40% from 60% as we question the true synergies between the companies, and lowering our FY17 EPS estimate to $3.65 from $3.80. Our $40 fair value estimate equals 11x EPS, 9x EV/EBITDA and a 7% free cash flow yield based on our FY17 estimates which are somewhat below Street consensus."
Shares of Viacom closed at $38.42 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades, Mergers and Acquisitions, Rumors
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