UPDATE: Citigroup Reiterates on Viacom Ahead of Earnings Conference Call

In a report published Wednesday, Citigroup analyst Jason B. Bazinet reiterated a Buy rating on Viacom VIAB, and raised the price target from $84.00 to $102.00. In the report, Citigroup noted, “Expect revenue to grow 7% to $3.61 billion, in-line with consensus. Expect domestic advertising revenue to accelerate sequentially to 7% and affiliate fees to grow 7%. Our operating income estimate of $1.19 billion represents a 33% margin and is in-line with consensus. All told, our EPS estimate of $1.44 is a penny below the Street...We are rolling valuation forward from fiscal 2015 to calendar 2015 and increasing our target multiple from 13.5x to 15.5x. We believe Viacom deserves a premium to the S&P of 14.4x as the firm ranks in the 1st quartile for expected EPS growth through 2015. All told, we apply a 15.5x multiple to calendar '15 EPS of $6.61 to arrive at our $102 target price (up from $84). Reiterate Buy.” Viacom closed on Tuesday at $82.12.