Guggenheim Upgrades Viacom (VIAB) to Buy

Guggenheim analyst Michael Morris upgraded Viacom (NASDAQ: VIAB) from Neutral to Buy with a price target of $35.00 (from $31.00).

The analyst comments "CBS and Viacom made an official announcement this afternoon (link) that the two companies have entered into an agreement to combine in an all-stock deal that values the new company at more than $28bn. Viacom Class A and B voting shares will be converted to CBS shares at a 0.59625 ratio. The transaction is expected to be immediately accretive to EPS and highly cash flow generative. The company expects to achieve $500mm in annual cost savings within 12-24 months of closing, which is anticipated by calendar 2019 year end. We provide details and analysis of the proposed merger within."

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 $29.21 yesterday.

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