Goldman Sachs Upgrades Scripps Networks Interactive (SNI) Two Notches to 'Buy'; Changing Our Tune with Food
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Price: $90.04 --0%
Rating Summary:
2 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
2 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Goldman Sachs upgraded Scripps Networks Interactive (NYSE: SNI) from Sell to Buy with a price target of $63.00 (from $50.00).
Analyst, Drew Borst, said, "Our 2012/13/14E EPS is increased by 5%/13%/13% due to lower share count, higher advertising and online streaming deal. Since SNI was added to our Sell list on January 31, 2011, its shares are up 14% vs. the S&P up 4%. We see the stock being bolstered by strong TV ratings (especially at Food Network), limited international exposure and the potential EPS accretion from online streaming deals and a potential Food Network buy-in that alone could boost 2013 EPS by around 14% and lower the P/E by a turn and half."
"SNI is in one of the few content companies to not strike any licensing deals with the online streaming companies, namely Netflix (Nasdaq: NFLX), Amazon (Nasdaq: AMZN) or Hulu. SNI has articulated a three pronged digital strategy of simultaneously pursuing: (1) Authentication (or TV Everywhere) deals with existing distribution partners, (2) Organically built, wholly-owned online properties that directly reach consumers (e.g., foodnetwork.com), and (3) Licensing content to thirdparties."
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 $52.88 yesterday.
Analyst, Drew Borst, said, "Our 2012/13/14E EPS is increased by 5%/13%/13% due to lower share count, higher advertising and online streaming deal. Since SNI was added to our Sell list on January 31, 2011, its shares are up 14% vs. the S&P up 4%. We see the stock being bolstered by strong TV ratings (especially at Food Network), limited international exposure and the potential EPS accretion from online streaming deals and a potential Food Network buy-in that alone could boost 2013 EPS by around 14% and lower the P/E by a turn and half."
"SNI is in one of the few content companies to not strike any licensing deals with the online streaming companies, namely Netflix (Nasdaq: NFLX), Amazon (Nasdaq: AMZN) or Hulu. SNI has articulated a three pronged digital strategy of simultaneously pursuing: (1) Authentication (or TV Everywhere) deals with existing distribution partners, (2) Organically built, wholly-owned online properties that directly reach consumers (e.g., foodnetwork.com), and (3) Licensing content to thirdparties."
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 $52.88 yesterday.
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