Wells Fargo Starts Viacom (VIAB) at Market Perform; Estimates Can Go Either Way; We Remain On The Sidelines
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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). The stock initially reacted with a 22% drop from September 19, 2011, through October 3, 2011 (versus the S&P 500, down 8%), but has since recovered its losses. While Nickelodeon is likely to recoup some of its lost viewership with new programming, we do not know the timing or magnitude. Plus, competition with Disney (NYSE: DIS) is only increasing via both its Disney Channel and the March 2012 launch of Disney Junior. We know that management is focused on Nick and believe that Viacom remains a healthy company with a stable affiliate fee model (24% of revenue). 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 estimates, we do not find the entry
point as compelling at this time, despite a below-peer valuation."
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 $46.97 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). The stock initially reacted with a 22% drop from September 19, 2011, through October 3, 2011 (versus the S&P 500, down 8%), but has since recovered its losses. While Nickelodeon is likely to recoup some of its lost viewership with new programming, we do not know the timing or magnitude. Plus, competition with Disney (NYSE: DIS) is only increasing via both its Disney Channel and the March 2012 launch of Disney Junior. We know that management is focused on Nick and believe that Viacom remains a healthy company with a stable affiliate fee model (24% of revenue). 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 estimates, we do not find the entry
point as compelling at this time, despite a below-peer valuation."
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 $46.97 yesterday.
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