Wells Fargo Downgrades ViacomCBS (VIAC) to Underweight
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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."
Shares of ViacomCBS closed at $67.00 yesterday.
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