Scripps Networks (SNI): Cannibalization Drives Estimate Cut - JP Morgan

JPMorgan analyst, Alexia Quadrani, reiterated her Overweight rating on shares of Scripps Networks Interactive (NASDAQ: SNI) noting that the ad market remains healthy and underlying demand for SNI inventory remains strong. However, the analyst is bringing down advertising revenue for Q2 reflective of ongoing softness in ratings, which is largely driven by cannibalization of viewership from the news media.

Domestic advertising growth comes down to more in line with the growth in Q1 (+5.0% versus +7.0% modeled previously), and the analyst is now looking for total company EBITDA of $403m vs. $414m. No change to the price target of $83.

For an analyst ratings summary and ratings history on Scripps Networks Interactive click here. For more ratings news on Scripps Networks Interactive click here.

Shares of Scripps Networks Interactive closed at $67.47 yesterday.

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