UPDATE: Goldman Sachs Upgrades Viacom to Buy on Improving Fundamentals
Goldman Sachs upgraded Viacom (NASDAQ: VIAB) from Neutral to Buy and raised the price target from $51.00 to $68.00.
Goldman Sachs commented, "Viacom's fundamentals are positively inflecting and it offers best-in-sector capital returns (11% yield on the current share price) at a lowest-in-sector multiple (10X 2014E EPS). The stepped-up investment in NICK programming is driving ratings higher sequentially, and with more new programs planned, we expect the trend to continue. We expect US advertising growth to continue accelerating with a return to positive growth in the June quarter. Also, upside may be realized from SVOD licensing deals, including renewals with NFLX and AMZN."
Viacom closed at $57.88 on Friday.
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