Nomura Thinks Viacom Still a Buy, Cuts Price Target

August 6, 2012 8:46 AM EDT Send to a Friend
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Price: $75.30 --0%

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Analysts at Nomura Securities maintained a Buy rating on Viacom (NASDAQ: VIA) but lowered their price target to $53.00 (from $54.00).

"When Viacom posted F3Q earnings of $0.97, $0.03 below our estimate with advertising down -9% (vs. -4% est.), we braced ourselves for the worst," said Michael Nathanson, an analyst at Nomura.

"However, after witnessing the stock outperform the S&P 500, it became apparent to us that near-term negative sentiment has bottomed out. To their credit, management did a good job on the call addressing two key issues: 1) Affiliate fees: double digit growth in F4Q and on track for very high high-single digits to low-double digit growth in 2013, 2) Capital Allocation: commitment to buy back shares remains unchanged."

Nomura lowered their fiscal Q4 estimates for Viacom by 9c to $1.18.

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 $49.12 yesterday.


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