Viacom (VIAB): Leadership Vacuum Needs To Be Resolved Before Corporate Actions Begin - FBR
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FBR Capital analyst, Barton Crockett, reiterated his Outperform rating on shares of Viacom (NASDAQ: VIAB) after the company formally announced several management changes that were reported to be in the works—the departure of Philippe Dauman as CEO, COO Thomas Dooley taking over as interim CEO, and the addition of five directors to the board, nominated by the Redstone family.
The analyst sees this as an interim step, leaving the door open to greater changes over time that could be helpful for equity value. In particular, the analyst sees the potential for VIAB to be acquired and/or broken up, and costs cut. The probability of this happening near term will swing to a large degree on resolution of the leadership vacuum created by this transition.
No change to the price target of $57.
Shares of Viacom closed at $43.49 yesterday.
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