Nielsen Holdings (NLSN): Cutting Estimates But Its In The Price - Needham
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Needham & Company analyst, Laura Martin, reiterated her Buy rating on shares of Nielsen Holdings (NYSE: NLSN) but cut estimates to reflect Buy segment risks. Since NLSN’s 3Q16 earnings call on October 25, its market cap has dropped by $4.3B, based on current and projected weakness in its Buy segment. The analyst time with management and believes that Buy segment risks are far more limited in scope than investors fear.
She believes that, worst case, the maximum revenue at risk is $200mm at a 50% margin or a $100mm of lower FY17 EBITDA. NLSN's historical 11x EBITDA multiple implies risk of $1.1B, which implies $3.2B ($8.86/share) of upside from current share prices.
The analyst believes an upside catalyst should be NLSN's December 8 investor day. No change to the price target of $65.
Shares of Nielsen Holdings closed at $43.50 yesterday.
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