Needham & Company Maintains a 'Buy' on Viacom (VIAB); Q3 ROIC Analysis
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Price: $70.20 +0.89%
Rating Summary:
6 Buy, 8 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 26 | New: 12
Rating Summary:
6 Buy, 8 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 26 | New: 12
Trade VIAB Now!
Needham & Company maintains a 'Buy' on Viacom (NASDAQ: VIAB) price target of $63.00.
Analyst, Laura Martin, said, "There is typically an 80-90% statistical correlation between forward-year ROICs and valuations (share prices) in the media space. Wall St closely follows the income statement, ie, the numerator. In this quarterly report, we analyze the denominator - trends in assets intensity, capital allocation, working capital changes, TV and film investments, and free cash flow."
"We estimate that VIAB’s ROIC will increase by approximately 130 basis points from 13.8% in FY11 to 15.1% in FY12E, in the midpoint of the companies we follow. VIAB’s WACC should remain at about 9.1%, by our estimates."
For an analyst ratings summary and ratings history on Viacom click here. For more ratings news on Viacom click here.
Shares of Viacom closed at $49.91 yesterday, with a 52 week range of $41.72-$51.57.
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Analyst, Laura Martin, said, "There is typically an 80-90% statistical correlation between forward-year ROICs and valuations (share prices) in the media space. Wall St closely follows the income statement, ie, the numerator. In this quarterly report, we analyze the denominator - trends in assets intensity, capital allocation, working capital changes, TV and film investments, and free cash flow."
"We estimate that VIAB’s ROIC will increase by approximately 130 basis points from 13.8% in FY11 to 15.1% in FY12E, in the midpoint of the companies we follow. VIAB’s WACC should remain at about 9.1%, by our estimates."
For an analyst ratings summary and ratings history on Viacom click here. For more ratings news on Viacom click here.
Shares of Viacom closed at $49.91 yesterday, with a 52 week range of $41.72-$51.57.
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