Nomura Securities Maintains a 'Buy' on Viacom (VIA); Raising Numbers Despite Drop in Ads

May 4, 2012 12:55 PM EDT Send to a Friend
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Price: $81.25 -1.11%

Rating Summary:
    5 Buy, 5 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 12 | Down: 11 | New: 20
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Nomura Securities maintains a 'Buy' on Viacom (NASDAQ: VIA) price target raised from $55 to $57.

Analyst, Michael Nathanson, said, "We are reducing our advertising projections for Viacom through the rest of the fiscal year. We now project FY12 ad revenues to be down 1.4% Y/Y (vs. -0.5% prev.). We are increasing FY12E affiliate fee growth to 10% (from 9%), including the upside from F2Q and stronger digital revenue in F2H12. We are increasing our FY12E EPS by from $4.00 to $4.34 and maintaining our FY13E EPS estimate at $4.97...Valued at 9.5x CY13E is inexpensive for patient investors. We believe that Viacom is simply too cash-generative, too cheap and too resilient to trade below these levels vs. peers and the market."

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 $52.59 yesterday.




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