UPDATE: Piper Jaffray Downgrades Viacom to Neutral on Moderating Growth and Buyback
Piper Jaffray downgraded Viacom (NASDAQ: VIAB) from Overweight to Neutral and raised the price target from $53.00 to $58.00.
Piper Jaffray noted, "Our call incorporates a continued slow growth profile, a richer valuation and moderating impact of a buyback plan. While the rate of ratings declines have moderated, we still see some time before these investments have a positive impact on ad growth, leaving investors time to move back into the shares if the investment is eventually successful. The company's massive $10B buyback authorization continues, but the accretive impact of those buybacks have moderated as the VIAB shares crossed $60 and our estimated fair value."
Viacom closed at $60.35 on Thursday.
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