Nomura Securities Maintains a 'Buy' on Viacom (VIAB); Dora's Back

Nomura Securities maintains a 'Buy' on Viacom (NASDAQ: VIAB) price target of $54.00.

Analyst, Michael Nathanson, commented on this morning's resolution between DirecTV (NYSE: DTV) and Viacom. Nathanson said, "We believe Viacom ultimately received increases above its Most Favored Nation clause with its other existing contracts, and the deal is consistent with the company’s prior guidance for affiliate fee growth of high-single to low-double-digit growth. The unknown to us is if Viacom receives the return to market rate all in the first year or if it is spread out over a few years. If the step-up was all in the first year, our total domestic affiliate fee revenue growth would increase to over 10% Y/Y in FY13, above our current 8% Y/Y estimate."


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 $46.65 yesterday.

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