Needham & Company Maintains a 'Buy' on Viacom (VIAB); ROIC Analysis

Needham & Company maintains a 'Buy' on Viacom (NASDAQ: VIAB) price target of $63.00.

Analyst, Laura Martin, said, "There is currently an 89% correlation between FY12E ROIC and media industry share prices. Wall St closely follows the income statement, ie, the numerator. In this quarterly report, we analyze the denominator - trends in assets intensity, capital allocation, working capital changes, TV and film investments, and free cash flow...We estimate that VIAB’s ROIC will increase by approximately 140 basis points from 13.8% in FY11 to 15.2% in FY12E, among the highest of the companies we follow. VIAB’s WACC should remain at about 9.1%, by our estimates."

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 $47.79 yesterday.

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