Barclays Maintains an 'Equalweight' on Scripps Networks (SNI); Analyst Day Conveys Positive Tone

Barclays maintains an 'Equalweight' on Scripps Networks Interactive (NYSE: SNI) price target of $44.00.

Barclays analyst says, "Yesterday, we attended the Scripps Networks analyst day in New York. The SNI management team delivered a generally positive update on company and industry trends, though commentary was more or less in line with our expectations...Ad growth should accelerate in 4Q: Despite an expected slowdown in 3Q ad growth, management emphasized that ad growth should improve sequentially in 4Q, given the impact of double-digit price increases from upfront sales this past spring. Still, we remain guarded on ad growth upside, given ongoing ratings softness at key networks."

"FY '11 guidance reiterated: Despite ongoing macroeconomic weakness, management reiterated full year guidance, including revenue growth of 10-12%. With affiliate fee growth likely to remain at 6% for the rest of the year, the implied growth rate for advertising revenues in 2H'11 is in the low double digits, which is consistent with our current estimate of 10.7% growth in 3Q and 11.1% growth in 4Q."

For more ratings news on Scripps Networks Interactive click here and for the rating history of Scripps Networks Interactive click here.

Shares of Scripps Networks Interactive closed at $39.04 yesterday.

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