UPDATE: Sterne Agee Initiates Coverage on Viacom with Buy Rating, $76.50 PT on Multiple Positive Factors

In a report published Thursday, Sterne Agee analyst Vasily Karasyov initiated coverage on

with a Buy rating and $76.50 price target. In the report, Sterne Agee noted, “We are initiating coverage of VIAB, the cheapest large cap media stock in the group, with a Buy rating. We expect improving advertising revenue trends to provide support to the current P/E multiple of 13x which, combined with EPS growth driven by operating earnings and continued buybacks, imply a stock price of $76.50 within 12 months, up 14% from the current level.” Viacom closed on Thursday at $65.26.