UPDATE: Deutsche Bank Lowers PT on Scripps Networks to $45
Deutsche Bank is out with its report today on Scripps Networks (NYSE: SNI), lowering its PT from $50 to $45.
In its report, Deutsche Bank writes, "Given the shift in our forecast to flattish margins going forward, below our prior view and below our sector view, our DCF target moderates $6 to $45/shr. We utilize an 11% WACC (12% cost of equity on 90% of capital; 4.5% pre-tax debt cost on rest) and 3% terminal growth estimate, in line with sector. Our Hold rating could prove incorrect if (1) SNI meaningfully levered through an accretive Food minority buy-in (est. $0.36 accretive, 11% to ‘12E), or (2) via a more aggressive share repurchase plan than we have modeled, much less if (3) ratings rebound or (4) the int'l strategy gains traction."
Shares of SNI closed Thursday at $41.66, down 0.43% from Wednesday's close.
