Market Overview

Why BMO Is Positive On Nielsen

Related NLSN
Jim Cramer Shares His Thoughts On DowDuPont, Home Depot And More
27 Stocks Moving In Thursday's Pre-Market Session

Nielsen Holdings PLC (NYSE: NLSN) could see a bump from improving investor sentiment amid the call to regulate the "Big Data" use, an analyst at BMO Capital Markets said.

The Analyst

Daniel Salmon upgraded Nielsen from Market Perform to Outperform, with a $38 price target.

The Thesis

Sentiment toward Nielsen stock is shifting, as "big data/platform" regulation increases and 3P measurement looks more sustainable, Salmon said in a Monday note. The analyst sees tightening regulation on open internet platforms as positive for a third-party measurement company.

"We believe advertisers will further increase focus on verifying data from large internet platforms, which we believe could increase the demand for products from companies like Nielsen," Salmon said.

These trends bode well for both Digital Ad Ratings and Digital Content Ratings, products that can be used to measure/authenticate digital ad campaigns and audiences.

"Additionally, we believe Nielsen Catalina Solutions (NCS) and Visual IQ could benefit from recent trends in the industry," the analyst said.

Salmon said the company has opportunity to see marginally improved revenue trends in Watch, as clients redouble efforts to verify measure and authenticate new media channels.

The trough valuation at which shares are trading renders it attractive, the analyst added.

The firm sees the upgrade more as an opportunistic call on Nielsen, rather than a material change in how it views the company's mid- and long-term role in the ecosystem.

Price Action

Shares of Nielsen are down about 9 percent in the year-to-date period. At time of writing, shares were up 3.6 percent on the day to $33.52.

Related Links:

New Nielsen Bull Projects 'Very Strong Margin Expansion'

Even Among Gamers, 70% Don't Have The Nintendo Switch On Their Radar

Latest Ratings for NLSN

Dec 2018Credit SuisseInitiates Coverage OnNeutral
Oct 2018SunTrust Robinson HumphreyMaintainsBuyBuy
Sep 2018Morgan StanleyMaintainsOverweightOverweight

View More Analyst Ratings for NLSN
View the Latest Analyst Ratings

Posted-In: BMO Capital Markets Daniel SalmonAnalyst Color Upgrades Analyst Ratings


Related Articles (NLSN)

View Comments and Join the Discussion!

Latest Ratings

TVPTImperial CapitalDowngrades15.8
ACORGoldman SachsDowngrades10.0
BCOVB. Riley FBRUpgrades12.0
CAMPFirst AnalysisDowngrades22.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

BofA Shifts To Neutral Stance On Ellie Mae, But Says Long-Term Growth Projections Are Unchanged

Credit Suisse Double Downgrades Kraft Heinz To Underperform