TV Not Abandoned, Viacom (VIAB) Not Broken
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Price: $24.22 --0%
Rating Summary:
19 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
19 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Analysts at Pivotal research think shares of Viacom (NASDAQ: VIAB) are undervalued by approximately 30 percent. The depressed price reflects concerns about structural problems that, in the view of Pivotal analyst, are really run of the mill cyclical problems that are typical of any hit-driven enterprise.
"Many investors continue to believe that kids are abandoning TV in favor of streaming services such as Netflix. This view is contradicted by any evidence we consider as appropriate for analysis," said analyst Brian Wieser.
"Rightly then," continued Wieser, "other investors have been concerned about Viacom’s ability to develop new hit programs given the ratings weakness exhibited by several of the company’s core networks. By definition, in any hit-driven enterprise, we should expect peaks and troughs, and clearly Viacom has been experiencing a trough for some time. To assume it continues is to assume the company is, for lack of a better word, 'broken'. However, we have not seen evidence to support this notion."
Pivotal Research has a Buy rating on Viacom (NASDAQ: VIAB) with a modified price target of $75.00 (from $73.00).
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 $57.51 yesterday.
"Many investors continue to believe that kids are abandoning TV in favor of streaming services such as Netflix. This view is contradicted by any evidence we consider as appropriate for analysis," said analyst Brian Wieser.
"Rightly then," continued Wieser, "other investors have been concerned about Viacom’s ability to develop new hit programs given the ratings weakness exhibited by several of the company’s core networks. By definition, in any hit-driven enterprise, we should expect peaks and troughs, and clearly Viacom has been experiencing a trough for some time. To assume it continues is to assume the company is, for lack of a better word, 'broken'. However, we have not seen evidence to support this notion."
Pivotal Research has a Buy rating on Viacom (NASDAQ: VIAB) with a modified price target of $75.00 (from $73.00).
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 $57.51 yesterday.
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