Wells Fargo Starts Viacom (VIAB) at Market Perform; The Stock Has Recovered, Yet Ratings Have Not
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Price: $24.22 --0%
Rating Summary:
19 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
19 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo initiates coverage on Viacom (Nasdaq: VIAB) with a Market Perform. PT range $51-$53.
Wells analyst says, "Viacom is essentially a pure-play cable network that has recently suffered ratings declines at flagship Nickelodeon (P2-11 viewership is down 20% since mid-September)...We would look to get more constructive on the stock once ratings turn, but with the greater risk of downside than potential for upside to near-term estimates, we do not find the entry point as compelling at this time, despite a below-peer valuation. On a more positive note, Viacom has the most-aggressive capital allocation strategy of its peers, which should provide a floor for the stock during this period of ratings volatility. We are initiating coverage with a Market Perform rating on the shares and a $51-53 valuation range, and introducing our FY2012 and FY2013 EPS estimates of $4.27 and $5.05 versus the consensus of $4.28 and $5.06."
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 $44.76 yesterday.
Wells analyst says, "Viacom is essentially a pure-play cable network that has recently suffered ratings declines at flagship Nickelodeon (P2-11 viewership is down 20% since mid-September)...We would look to get more constructive on the stock once ratings turn, but with the greater risk of downside than potential for upside to near-term estimates, we do not find the entry point as compelling at this time, despite a below-peer valuation. On a more positive note, Viacom has the most-aggressive capital allocation strategy of its peers, which should provide a floor for the stock during this period of ratings volatility. We are initiating coverage with a Market Perform rating on the shares and a $51-53 valuation range, and introducing our FY2012 and FY2013 EPS estimates of $4.27 and $5.05 versus the consensus of $4.28 and $5.06."
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 $44.76 yesterday.
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