Wells Fargo Downgrades ViacomCBS (VIAC) to Underweight

March 26, 2021 5:45 AM EDT
Get Alerts VIAC Hot Sheet
Price: $41.44 +1.44%

Rating Summary:
    6 Buy, 11 Hold, 9 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 10 | New: 10
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Wells Fargo analyst Steven Cahall downgraded ViacomCBS (NASDAQ: VIAC) from Equal Weight to Underweight with a price target of $59.00.

The analyst comments "Of all the recent Media momentum stocks, none has been more storied than VIAC. Investors balked at its meteoric rise to a peak of +160% YTD and since its recent (well-timed) equity raise, it seems the momentum has come out. We think this marks the end of a remarkable volatility period with valuations resetting to more normalized levels. Our blended target goes from 14x to 11x EV/EBITDA as we reduce our short/momentum premium with unchanged core + DTC value. Like peers, we're downgrading VIAC a notch on this new valuation outlook, which takes us to Underweight and a $59 price target (11% downside). After a bit more valuation reset we think things go back to fundamentals."

For an analyst ratings summary and ratings history on ViacomCBS click here. For more ratings news on ViacomCBS click here.

Shares of ViacomCBS closed at $67.00 yesterday.

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