UPDATE: Deutsche Bank Downgrades Scripps Networks to Hold on Weaker Food Networks Viewership
Deutsche Bank downgraded Scripps Networks Interactive, Inc (NYSE: SNI) from Buy to Hold and lowers the price target from $76.00 to $65.00.
Deutsche Bank noted, "While SNI shares have already underperformed peers due to its ratings softness at Food, we see the potential for further challenges given: (1) viewership comps are even tougher in 1Q13 for Food; (2) the advertising impact from soft Food ratings should begin in 4Q12; (3) we are lowering our estimates below consensus; and (4) with slowing advertising growth and its affiliate renewal cycle now complete, suggesting mid-single digit revenue growth potential, and given potential programming cost growth pressures to fix Food and grow the Travel Channel, EBITDA growth should slow to mid-single digits, the middle of the peer group, while valuation remains at the higher end of the peer group."
Scripps Networks closed at $59.83 on Friday.
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