Goldman Sachs Upgrades Viacom (VIAB) to Buy, NICK is Back

Goldman Sachs upgraded Viacom (NASDAQ: VIAB) from Neutral to Buy with a price target of $68.00 (from $51.00).

The firm said fundamentals are positively inflecting and it offers best-in-sector capital returns (11% yield on the current share price) at a lowest-in-sector multiple (10X 2014E EPS).

Goldman said stepped-up investment in NICK programming is driving ratings higher sequentially. With more new programs planned, they expect the trend to continue.

Accelerating US US advertising growth and upside may be realized from SVOD licensing deals, including renewals with Netflix (Nasdaq: NFLX) and Amazon (Nasdaq: AMZN), are also positives.


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 $57.88 yesterday.

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