UBS Downgrades ViacomCBS (VIAC) to Sell on Recent Trading Frenzy Rally
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(Updated - February 8, 2021 6:27 AM EST)
UBS downgraded ViacomCBS (NASDAQ: VIAC) from Neutral to Sell with a price target of $29.00.
The analyst comments "We are downgrading VIAC to Sell while maintaining our PT. While more resilient advertising/affiliate trends supported shares, we believe trading volatility has driven the recent outsized performance (+20% in past two weeks). In our view, share appreciation doesn't fully discount risks from cannibalization of the legacy Pay TV business and content licensing associated with the significant DTC tilt. Combined with higher cord cutting in '21 and likely cost inflation from the NFL renewal, these issues should weigh on EBITDA/FCF and have created a more challenging risk-reward at this price."
Shares of ViacomCBS closed at $54.04 yesterday.
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