Wunderlich Securities Believes Longer-Term Cost Containment Offsets Milder Advertising Growth for Scripps Networks Interactive

In a report published Friday, Wunderlich Securities analyst Matthew Harrigan reiterated a Buy rating and $90.00 price target on

. In the report, Wunderlich Securities noted, "We had initially been expecting to be lowering our price target somewhat on Buy-rated Scripps Networks Interactive (SNI) following yesterday's disappointing Q4 Lifestyle network advertising result (up just 0.3% vs. our 2.3% estimate ) and guidance for overall 4% 2015E top line growth versus our former 5.7% estimate. However, the company's new focus on expense containment actually pushes down 2016 Lifestyle expenses by about $2mm relative to former estimates with the 2019E cost savings benefit improving to nearly $25mm. The perverse outcome is that our S&P 500 linked price target is actually flat at $90. We continue to think that SNI is advantaged by its networks' adaptability to digital and the Teflon character of its viewing levels even with the advent of more time-shifted viewing." Scripps Networks Interactive closed on Thursday at $72.61.