Nomura Securities on U.S. Media: Q2 Ad Tracker (DIS, NWS, GOOG, FB)
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Price: $111.56 -2.07%
Rating Summary:
30 Buy, 19 Hold, 3 Sell
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Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
30 Buy, 19 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Nomura Securities on U.S. Media: Q2 Ad Tracker
Analyst, Michael Nathanson, said, "US advertising growth, as measured by the Nomura Ad Tracker grew 4.6% in the second quarter – a deceleration off of 1Q’s 5.8%. Excluding Online's robust 14% growth in 2Q12, traditional media advertising slowed to growth of only 1.4% – a 180bps sequential deceleration from 1Q12. Advertising was hurt by a softer underlying ad environment and weaker broadcast and cable networks ratings. We continue to believe that upside to earnings estimates from advertising surprises is unlikely and recommend stocks with structural growth drivers like near-term affiliate fee renewals (e.g.: Buy rated Disney (NYSE: DIS), $55 TP and News Corp (NYSE: NWS), $26 TP) or pure valuation like Buy rated Via. Google (Nasdaq: GOOG)(Buy, $750 PT) remains our top pick in the online advertising space. We also rate Facebook (Nasdaq: FB)(Buy $31.50 PT) based on the embedded call option of improved, long-term monetization of its large entrenched user base."
Analyst, Michael Nathanson, said, "US advertising growth, as measured by the Nomura Ad Tracker grew 4.6% in the second quarter – a deceleration off of 1Q’s 5.8%. Excluding Online's robust 14% growth in 2Q12, traditional media advertising slowed to growth of only 1.4% – a 180bps sequential deceleration from 1Q12. Advertising was hurt by a softer underlying ad environment and weaker broadcast and cable networks ratings. We continue to believe that upside to earnings estimates from advertising surprises is unlikely and recommend stocks with structural growth drivers like near-term affiliate fee renewals (e.g.: Buy rated Disney (NYSE: DIS), $55 TP and News Corp (NYSE: NWS), $26 TP) or pure valuation like Buy rated Via. Google (Nasdaq: GOOG)(Buy, $750 PT) remains our top pick in the online advertising space. We also rate Facebook (Nasdaq: FB)(Buy $31.50 PT) based on the embedded call option of improved, long-term monetization of its large entrenched user base."
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