Nomura Securities on U.S. Media: Q2 Earnings Review (NWS, DIS)
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Price: $33.52 -0.03%
Rating Summary:
3 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 12 | New: 19
Rating Summary:
3 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 12 | New: 19
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Nomura Securities on U.S. Media: Q2 Earnings Review
Analyst, Michael Nathanson, said, "With large-cap media 2Q earnings now behind us, we have just lived through one of the most unusual periods in recent memory. While we felt weak ad revenues reflected a softening domestic economy, media stock prices continued to push higher. We believe the sector is being supported by three key dynamics: 1) a rotation out of other consumer discretionary stocks into our names that are specific and intact stories; 2) reliable and fast growing affiliate fees areas offsetting advertising weakness; and 3) the return of capital remains a high management priority and EPS driver/stabilizer. We believe that media stock performance will have greater dispersion in the second half and into 2013. Investors should concentrate on companies that have mass, premium and nonreplicable content like our Buy rated News Corp (NYSE: NWS) and Disney (NYSE: DIS), in our view. We believe that Viacom also remains a value opportunity, with the lowest value and the highest relative 2012 share buyback."
Analyst, Michael Nathanson, said, "With large-cap media 2Q earnings now behind us, we have just lived through one of the most unusual periods in recent memory. While we felt weak ad revenues reflected a softening domestic economy, media stock prices continued to push higher. We believe the sector is being supported by three key dynamics: 1) a rotation out of other consumer discretionary stocks into our names that are specific and intact stories; 2) reliable and fast growing affiliate fees areas offsetting advertising weakness; and 3) the return of capital remains a high management priority and EPS driver/stabilizer. We believe that media stock performance will have greater dispersion in the second half and into 2013. Investors should concentrate on companies that have mass, premium and nonreplicable content like our Buy rated News Corp (NYSE: NWS) and Disney (NYSE: DIS), in our view. We believe that Viacom also remains a value opportunity, with the lowest value and the highest relative 2012 share buyback."
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