Nomura Securities Maintains a 'Buy' on Viacom (VIA-B); Raising FY11-12 Estimates

Nomura Securities maintains a 'Buy' on Viacom (NYSE: VIA-B), raises PT from $55 to $57.

Nomura analyst, Michael Nathanson, says, "Post Viacom’s F1Q11 results, we are raising our FY2011 and FY2012 EPS (FY2011 EPS to $3.65 and FY2012 EPS to $4.15) due to higher advertising growth, improving equity income and higher share repurchases ($2.3bn in both FY11 and FY12). We now estimate F3Q EPS of $0.84 with +6.4% EBIT growth due to the timing of expenses at Entertainment."

"Expect Double Digit Advertising Growth to Continue - In FY2011, we now estimate domestic ad growth of 11% with 13% growth in F3Q and 10% in F4Q."

"Given the relative attractive valuation of Viacom vs. cable network pure plays, we believe investors will continue rotating into Viacom if ad growth meets our forecast."

For more ratings news on Viacom click here and for the rating history of Viacom click here.

Shares of Viacom closed at $50.63 yesterday.

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