UPDATE: Wedbush Reduces PT to $51 on Viacom on Lower Estimates
Wedbush maintained its Outperform rating on Viacom (NASDAQ: VIAB) but lowered its price target from $55 to $51.
Wedbush commented, "Reducing FY12E adj. EPS to $4.13 from $4.23 on June quarter miss. Key FY2012 estimate changes are at Media Networks — we reduce FY ad revenue growth to down 4% from flat and now assume FY margin is similar to last year. … Our PT is supported by a target P/E assuming a ~10% discount to the recent trading range of diversified media peers, reflecting greater uncertainty in Viacom's ad growth outlook."
Viacom closed at $47.20 on Friday.
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