Needham & Company Starts Scripps Networks Interactive (SNI) at Buy; Strategic Positioning

Needham & Company initiates coverage on Scripps Networks Interactive (NYSE: SNI) with a Buy. PT $62.

Needham analyst says, "Strategic Position - There are only a handful of companies in the world that produce the bulk of premium content for the $300B (market capitalization) TV ecosystem in the US. SNI is a bite-sized, pure play cable networks company and is the most UScentric (implying higher margins and greater earnings visibility)."

"Takeover Target - Consolidation has accelerated with the large becoming huge as evidenced by Comcast (Nasdaq: CMCSK) buying NBC and by ATT (NYSE: T) buying T Mobile (all N/R). SNI, given its small size, is the most likely content company to be acquired. Historically, takeover premiums are 30%+ for cable networks."

For more ratings news on Scripps Networks Interactive click here and for the rating history of Scripps Networks Interactive click here.

Shares of Scripps Networks Interactive closed at $49.39 yesterday.

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