UPDATE: Nomura Group Reiterates Buy Rating, Lowers PT on Viacom
In a report published Friday, Nomura Group reiterated its Buy rating on Viacom (NASDAQ: VIAB), but slightly lowered its price target from $58.00 to $57.00.
Nomura Group noted, “F4Q better than expected, with EPS of $1.21 (vs our $1.16) and US ad -6% (vs our -7% est). Mgnt set foundation for strong 2013: optimism that ratings will improve on easy compares and new program talent; affiliate fees (42% of network rev) on track for very high high-SD to low-DD growth; and continuing buybacks of $2.5bn of shares. For F1Q, we cut EPS by $0.04 to $0.94, with improving US advert trends (-4% Y/Y, unchanged) but slower intl advert (-10% Y/Y). We raise our FY13E EPS on F4Q beat and lower Cable Network exp. At 10x CY13E EPS, we see stock as really cheap for patient investors.”
Viacom closed on Thursday at $49.23.
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