UPDATE: Jefferies Upgrades Scripps Networks to Buy

Jefferies raises its rating on Scripps Networks

to Buy from Hold and increases its price target to $52, up $7, on more reasonable valuation of shares. Jefferies says, "We are upgrading SNI to Buy from Hold as we believe valuation has become more reasonable over the past two years, the high level of int'l and online investment losses and programming cost growth should be peaking and fully accommodated in consensus estimates, we see viewership returning to growth Y/Y in 2Q/3Q, a buy-in of the Food minority stake from Tribune has a greater likelihood this year than it seemed the past two and '13E affiliate revenue growth appears faster than expected (incentives rolling off)." SNI closed at $44.98 a share yesterday.