Market Overview

Pivotal Research: For Nielsen Holdings, The Reality Is Better Than The Perception

Share:
Pivotal Research: For Nielsen Holdings, The Reality Is Better Than The Perception
Related NLSN
Jim Cramer Shares His Thoughts On DowDuPont, Home Depot And More
27 Stocks Moving In Thursday's Pre-Market Session
Barclays ups Nielsen's target (Seeking Alpha)

Nielsen Holdings PLC (NYSE: NLSN) stock is being unfairly punished by investors despite fundamentals that remained largely unchanged over the past year, according to Pivotal Research Group. 

The Analyst

Analyst Brian Wieser upgraded shares of Nielsen from Hold to Buy and maintained a $35 price target. 

The Thesis

The perception of Nielsen's challenges appear "much worse" than the company's fundamental reality, Wieser said in a Monday note. Some of the concern is due to advertisers reducing their reliance on age- and gender-based metrics, 

"We think this is not likely to occur broadly anytime soon," the analyst said. 

Networks that want to sell to advertisers will continue to need Nielsen data, he said. 

"If anything, there is potential for upside from the use of additional Nielsen services (such as NBI or NCS) in establishing complementary targets." 

Despite the threat of cord-cutting and cord-shaving, Nielsen is gaining new customers by way of upstart SVOD services and vMVPDs, Wieser said. The growth of digital media, which pays based on campaigns, is a positive for the company, he said. 

Further measurement of non-traditional ad-supported TV services and the resumption of growth in Nielsen's buy businesses could serve as catalysts, Wieser said. 

Investor sentiment on Nielsen will rebound, the analyst said. 

The Price Target

Nielsen shares have lost about 16 percent year-to-date.

Related Links:

How Ad Companies Have Responded To A Changing Media Landscape

Latest Ratings for NLSN

DateFirmActionFromTo
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: Brian Wieser Pivotal Research GroupAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (NLSN)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
DLTRBernsteinUpgrades0.0
CNPUBSUpgrades34.0
UGIUBSDowngrades63.0
ATOUBSDowngrades106.0
CSCONomuraDowngrades50.0
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.

Daqo New Energy Shares Plunge, Roth Capital Downgrades On New Chinese Solar Policy

The OS Updates Apple Announced At WWDC 2018