Deutsche Bank Upgrades Scripps Networks Interactive (SNI) to Buy; Valuation Much More Reasonable

Deutsche Bank upgraded Scripps Networks Interactive (NYSE: SNI) from Hold to Buy.

Deutsche analyst said, "We are upgrading SNI as we believe valuation has become more reasonable over the past two years, the high level of int’l and online investment losses and programming cost growth should be peaking and fully accommodated in consensus estimates, we see viewership returning to growth Y/Y in 2Q/3Q, a buy-in of the Food minority stake from Tribune has a greater likelihood this year than it seemed the past two and ’13E affiliate revenue growth appears faster than expected (incentives rolling off)."

"...we are raising our EPS estimates by $0.10 in ‘12E to $3.25 and by $0.20 in ‘13E to $3.73, both above consensus. This is due to our expectation for a return to ratings growth in 2Q/3Q after a stretch where core viewership levels have been down Y/Y for 7 of the past 8 qtrs, positioning SNI well heading into the upfront this summer as well as for 2Q advertising, which is its second largest ad quarter of the year."


For an analyst ratings summary and ratings history on Scripps Networks Interactive click here. For more ratings news on Scripps Networks Interactive click here.

Shares of Scripps Networks Interactive closed at $44.98 yesterday.

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