UPDATE: Citigroup Lowers Target on Nielsen Holdings to $35
Citigroup reiterates its Buy rating on Nielsen Holdings (NYSE: NLSN) as 4Q results confirmed the current investment thesis, but lowers its target price target by $2 to $35 on lower estimates (EPS to $1.75 from $1.83).
Citigroup says, "4Q EBITDA margins were better and EPS beat our estimate/consensus by $0.04/$0.02, helped partly by interest exp and tax rate. 2012 guidance was generally good: 5-7% constant currency revs growth (in-line), 30-50 bps of margin expansion (consistent with 2011) and EPS of $1.70-$1.76 (vs. our/consensus $1.83/$1.82). The margin guide assumes continued “investment mode” by NLSN as the co. trades some profitability for positioning itself for future growth opportunities. The EPS guide vs. our model was impacted by FX, and higher-thanexpected cash tax rate and D&A expenses."
NLSN closed at $28.85 a share on Monday.
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