Goldman Sachs Downgrades Viacom (VIA-B) to Neutral
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Price: $44.76 --0%
Rating Summary:
2 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 18 | Down: 16 | New: 9
Rating Summary:
2 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 18 | Down: 16 | New: 9
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Goldman Sachs downgraded Viacom (NYSE: VIA-B) from Buy to Neutral with a price target of $51 (down from $53) citing weakness at Nickelodeon and now MTV.
The firm noted Viacom's two two largest networks – Nick and MTV - rating declines are accelerating. They also note that while shares are the cheapest int eh sector on P/E, this discount is in-line with the historic average. History shows that a multiple re-rating is unlikely until ratings improve.
Goldman cut FY12E EPS estimates from $4.17 to $4.06 and FY13 from $5.01 to $4.86, citing lower US advertising growth in FY12E to -2% from 0% and in FY13E to 5% from 6%. The firm is now 5% below the consensus on FY12 EPS and 3% for FY13.
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.
The firm noted Viacom's two two largest networks – Nick and MTV - rating declines are accelerating. They also note that while shares are the cheapest int eh sector on P/E, this discount is in-line with the historic average. History shows that a multiple re-rating is unlikely until ratings improve.
Goldman cut FY12E EPS estimates from $4.17 to $4.06 and FY13 from $5.01 to $4.86, citing lower US advertising growth in FY12E to -2% from 0% and in FY13E to 5% from 6%. The firm is now 5% below the consensus on FY12 EPS and 3% for FY13.
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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