UBS Cuts Price Target as Viacom (VIAB) Sees Disappointing Theater Results

UBS maintained a Buy rating on Viacom (NASDAQ: VIAB), and cut the price target to $55.00 (from $57.00), as theatrical results come in below expectations. UBS estimates a $115m profit shortfall between the company's 3 key films.

Analyst Doug Mitchelson commented, "Viacom's film slate has come in well below expectations, with disappointing theatrical results for its 3 key releases Zoolander 2 (2/12 release, $55.6m WW box to date), Whiskey Tango Foxtrot (3/4 release, $19.3m WW box to date) and 13 Hours: The Secret Soldiers of Benghazi (1/15 release, $64m WW box to date). We estimate a $115m profit shortfall for the 3 films, consistent with management's recent press commentary they will combine for $100m of losses in the March quarter."

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 $40.78 yesterday.

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