Needham & Company Raises Price Target on Nielsen Holdings (NLSN) Following 3Q15 Results
Needham & Company reiterated a Buy rating on Nielsen Holdings (NYSE: NLSN), and raised the price target to $55.00 (from $50.00), following the company's 3Q15 earnings results. NLSN reported 3Q15 revenue of $1.53B, Adjusted EBITDA of $479mm, and Adjusted EPS of $0.69. NLSN narrowed its FY15 guidance range to revenue growth of 4.3%-4.8%, margin expansion of 70+ basis points, and EPS goals of $2.60-$2.64.
Analyst Laura Martin commented, "NLSN took an aggressive stance on its 3Q15 call, evidenced by; 1) the CEO allocating the majority of his comments to NLSN’s Total Audience measurement product that competes directly with SCOR/RENT; 2) NLSN doubling its measurement panel to 100,000 people; 3) for the first time, asserting that the future of measurement must be a hybrid approach of set-top-box data plus panel data; and 4) suggesting that SCOR/ RENT is not independent owing to its WPP ownership. NLSN’s comments imply higher expenses and margin pressure near term, but higher revenues long term as NLSN fights to remain the currency for video viewing on all platforms, including mobile. FCF remains strong and third party measurement is becoming increasingly valuable as audiences fragment. We retain our Buy rating and raise our 12-month target price to $55 (from $50)."
For an analyst ratings summary and ratings history on Nielsen Holdings click here. For more ratings news on Nielsen Holdings click here.
Shares of Nielsen Holdings closed at $48.53 yesterday.