'Downsizing' Fizzles At Box Office, Does Little For Viacom's Unimpressive 2017
The poor performance of Matt Damon's latest film "Downsizing" may add another reason why investors should avoid Viacom, Inc. (NASDAQ: VIAB), according to Loop Capital Markets.
The Analyst
Loop Capital Markets' David Miller maintains a Hold rating on Viacom's stock with a price target raised from $27 to $28.
The Thesis
By some metrics, "Downsizing" tanked against "The Last Jedi" and "Jumanji" and ended the weekend collecting a mere $7.3 million in box office sales, Miller said in a Wednesday note. (See the analyst's track record here.)
Another negative: there's a "certain level of frustration that has surfaced" with Paramount CEO Jim Gianopulos, although it is important to keep in mind he was hired in March, Miller said. The first film with Gianopulos' full stamp of approval won't be released until fall 2018, so it is unfair to "blame" the executive for poor box office performance today, the analyst said.
A "certain faction" on Wall Street is convinced Viacom will reconnect with CBS Corporation (NYSE: CBS), Miller said. But the same logic holds true today as it did over the past year, Miller said: CBS CEO Les Moonves sees the merger as a "headache," and it would be better for both companies to continue on their separate paths.
Price Action
Shares of Viacom were trading lower by 3.11 percent at $30.88 Wednesday afternoon.
Related Links:
Viacom Shares May Have Bottomed, Says Deutsche Bank
Viacom Downgrade Sends Stock To 7-Year Low
Latest Ratings for VIAB
Nov 2017 | Deutsche Bank | Upgrades | Sell | Hold |
Nov 2017 | UBS | Maintains | Buy | |
Nov 2017 | Loop Capital | Maintains | Hold |
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