UPDATE: Wunderlich Securities Reiterates Buy, $53 PT on Scripps Networks Interactive
Wunderlich Securities maintains its Buy rating with a $53 price target on Scripps Networks Interactive (NYSE: SNI) on sufficient organic growth that affords the company leniency for the big ramp in 2012 cost guidance.
Wunderlich Securities says, "Even with breakout Food Network and HGTV ratings, SNI could remain near-term range bound off the front loading of expenses into Q1/H1 and moderate Q1 ad growth relative to Q2 and Q3. This is justified if i) Food Network is positioned to deliver on eventually emerging as a top five cable net, ii) Travel ratings improve so as to support affiliate fee repricing; iii) SNI digital realizes its potential for tablets and OTT; and iv) new overseas nets resonate as in the U.K. and South Africa."
SNI closed at $43.82 a share on Thursday.
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