UPDATE: Nomura Initiates Coverage on Viacom

In a report published Wednesday, Nomura analyst Anthony DiClemente initiated coverage on Viacom VIAB with a Neutral rating, establishing a $90.00 price target. According to the report, the analysts believe that consistent global affiliate fee trends and robust shareholder buybacks are ongoing, well-understood positives for VIAB. “We are somewhat concerned about fragmentation in the kids and teens TV ad marketplaces, where Viacom has maintained its steady market share,” the report noted. “Though improved measurement and monetization of mobile viewers can help monetization over time, we await evidence of more traction for Viacom's brands on digital in order to have a higher conviction on longer term domestic advertising trends at Viacom's cable TV networks.” VIAB closed Tuesday at $84.49.