UPDATE: Deutsche Bank Reiterates on Viacom on Last Entertainment Group Value Play
In a report published Friday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on Viacom (NASDAQ: VIAB), and raised the price target from $93.00 to $98.00.
In the report, Deutsche Bank noted, “We see Viacom as the last value play in the Entertainment group; it trades at a ~3x discount (14x CY14E P/E vs. sector 17x) despite returning to normal growth (DBe 7% FY14 EBITDA growth). We expect this discount will narrow as investors gain confidence in sustainability of growth and through continued strong stock repurchases (~8% of shrs out FY14e). Maintain Buy.”
Viacom closed on Thursday at $80.75.
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