Wedbush Upgrades Viacom (VIAB) to Outperform; Sees 75% Chance of Deal

October 17, 2016 7:48 AM EDT
Get Alerts VIAB Hot Sheet
Price: $40.99 +1.66%

Rating Summary:
    15 Buy, 25 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 18 | Down: 18 | New: 11
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Wedbush upgraded Viacom (NASDAQ: VIAB) from Neutral to Outperform with a price target of $46.00 (from $40.00), saying they see a 75% chance of a deal with CBS (NYSE: CBS).

Analyst James Dix commented, "... one “Les” company in big media should be more for VIAB shareholders; upgrading VIAB to OUTPERFORM from NEUTRAL on higher PT given increasing likelihood of merger. From our analysis, we highlight: 1) a detailed assessment of the strategic value of a transaction for CBS, which we see as paramount for its Chairman and CEO, Les Moonves; 2) assessment of where Paramount fits among the major Hollywood film studios, including takes from conversations with industry experts and talent, and 3) a presentation of various merger and stand-alone scenarios."

The firm places a 75% probability on a merger, which they assume would be an all-stock transaction.

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 $36.00 yesterday.

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