|Bid||12.82 x 2900|
|Ask||12.86 x 1000|
|Day's Range||12.27 - 13.58|
|52 Week Range||10.10 - 53.71|
|Beta (5Y Monthly)||1.47|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 13, 2019|
|Forward Dividend & Yield||0.96 (6.86%)|
|Ex-Dividend Date||Mar 12, 2020|
|1y Target Est||36.40|
ViacomCBS Inc. (NASDAQ: VIAC, VIACA) today announced that it has agreed to sell $1.25 billion in aggregate principal amount of 4.750% senior notes due 2025 at a price equal to 99.498% of the principal amount thereof (the "2025 Senior Notes") and $1.25 billion in aggregate principal amount of 4.950% senior notes due 2031 at a price equal to 98.036% of the principal amount thereof (the "2031 Senior Notes" and, together with the 2025 Senior Notes, the "Senior Notes"). The sale of the Senior Notes is expected to close on April 1, 2020, subject to customary closing conditions.
Nickelodeon will present KidsTogether: The Nickelodeon Town Hall, an exclusive hour-long special offering a kid’s-eye view of life today amid COVID-19, on Monday, March 30, at 7 p.m. (ET/PT). Hosted by actress Kristen Bell (The Good Place, Frozen, Veronica Mars) and featuring a performance by Alicia Keys, the special will directly address kids’ questions and concerns, include tips and insights from medical experts on ways to be healthy, and give first-person accounts from kids and families around the country who are social distancing and making changes to their everyday lives and relationships.
National Amusements, Inc. (NAI) and its wholly-owned subsidiary NAI Entertainment Holdings LLC (NAIEH) today announced that it has reached an agreement with its lenders to amend its credit facility. Following this amendment, NAI will have a revolving facility of $125 million and ample liquidity, in addition to its substantial cash reserves, to fund operations of NAIEH, which includes its theater business. NAI will not sell stock in ViacomCBS (NASDAQ: VIAC, VIACA) and does not intend to pledge additional stock of ViacomCBS, which remains at existing levels.
(Bloomberg) -- Federal Reserve Chairman Jerome Powell said the central bank will maintain its muscular efforts to support the flow of credit in the U.S. economy as Americans hunker down from the coronavirus pandemic.“We will keep doing that aggressively and forthrightly, as we have been,” Powell said Thursday in a Fed chief’s first-ever interview on NBC’s “Today” show. “When it comes to this lending we’re not going to run out of ammunition. That doesn’t happen.”Over the past three weeks, the U.S. central bank has introduced an unprecedented series of measures, pushing it deep into uncharted territory as it seeks to cushion the blow of the coronavirus on financial markets and the U.S. economy.The steps include massive bond purchases, emergency facilities to bolster credit markets, actions with foreign central banks to ease the supply of dollars worldwide, and programs for lending directly to American businesses.“We know that economic activity will decline probably substantially in the second quarter,” Powell said, adding that people were intentionally withdrawing from normal life to protect their health.That might mean the U.S. entering a recession, the Fed chief conceded, but argued it would be temporary.“This is a unique situation, this is not a typical downturn,” Powell said. “At a certain point we will get the spread of the virus under control and at that time confidence will return. Businesses will reopen again, people will come back to work.”His NBC interviewer, Savannah Guthrie, later confirmed in a tweet that it was the first time a Fed chair had ever appeared on the Today show in its 68-year history, in a emblematic sign of the extraordinary times facing the country.Powell emphasized that note of optimism, saying, “You may well see significant rises in unemployment, significant declines in economic activity, but there can also be a good rebound on the other side of that.”Powell appeared to distance himself from President Donald Trump’s position that the U.S. should perhaps seek a quick reopening of the economy because the clampdown on normal activity may cause more harm than the virus.‘Listen to the Experts’“We would tend to listen to the experts. Dr. Fauci said something like, the virus is going to set the timetable,” he said, referring to Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases. “That sounds right to me. The sooner we get the spread of the virus under control, people will regain confidence.”The Fed chief also pointed to the $2 trillion aid bill approved last night in the U.S. Senate that’s on its way to the House of Representatives today.“This bill that’s just passed is going to try to provide relief and stability,” he said. The legislation contains additional funds for the U.S. Treasury that can be used to boost the Fed’s lending firepower, he said, while the central bank’s actions will also lay the groundwork for a speedy economic recovery.Boost Recovery“The Federal Reserve is working hard to support you now,” he said. “Our policies will be very important when the recovery does come to make that recovery as strong as possible.”Michael Gapen, chief U.S. economist at Barclays Plc in New York, said looking past the second quarter was the right way to think about the challenge. “We can’t avoid taking an economic hit,” he said. “We can prevent some of the nastier second-round of effects like large-scale layoffs or a credit crunch.”The appearance on the popular morning show as many Americans are stuck in their homes marks the Fed chief’s first public remarks since he held an emergency Sunday evening press briefing by teleconference on March 15 to announce the central bank had slashed interest rates to almost zero.Public communication for Fed chairs has for decades been carefully choreographed, given the weight that even subtle signals can carry for investors.Powell gave only one other TV interview as chair, on CBS’s “60 Minutes.” Ben Bernanke, who led the Fed during the financial crisis, made his own rare appearance on “60 Minutes” in March 2009. Former Fed Chairman Alan Greenspan curbed on-the-record interviews with the press after his 1987 appearance on ABC’s “This Week with David Brinkley” caused stocks to drop.(Updates with comments from Powell from seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
ViacomCBS (NASDAQ: VIACA, VIAC) and Meredith Corporation (NYSE: MDP) today announced a multi-year deal to renew affiliation agreements for all seven of its CBS Affiliates, including three top 25 market affiliates, WGCL in Atlanta, GA; KPHO in Phoenix, AZ; and KMOV in St. Louis, MO. The seven markets combined reach 7 percent of the U.S. audience serving more than 7.6 million television households.
(Bloomberg Opinion) -- Ford Motor Co. announced a three-pronged effort on Tuesday to help the U.S. bolster its supply of life-saving medical equipment needed to combat the coronavirus. Even as its North American factories remain shuttered for traditional car-making work, Ford is partnering with General Electric Co. to scale up production of that company’s ventilators; it’s working with 3M Co. to manufacture respirators; and its United Auto Workers employees will assemble more than 100,000 plastic face shields a week. It was an impressive show of goodwill, especially for a company whose bloated balance sheet places it among those most vulnerable from a looming, sharp economic downturn.And it’s not going to be enough. Ford expects the first ventilators from its GE partnership — simplified models of what the industrial giant usually makes — to be ready by early June, CEO Jim Hackett told CBS This Morning on Tuesday. Just hours later, New York Governor Andrew Cuomo held a press conference and warned that the coronavirus is spreading faster in the state than previously anticipated, putting the area on course to hit the apex of cases in as soon as 14 days. At that point, it will need 140,000 total hospital beds and an additional 30,000 ventilators. “You cannot buy them, you cannot find them. Every state is trying to get them, other countries are trying to get them,” Cuomo said of ventilators. While the governor said it’s admirable that companies such as Ford and General Motors Co. are willing to get into the business, “it does us no good if they start to create a ventilator in three weeks or four weeks or five weeks.”Therein lies the problem. On March 16, I wrote about how America needed to once again marshal its great arsenal of democracy and put the nation’s manufacturers to work producing the tools needed to fight the coronavirus. In the absence of leadership by the Trump administration, manufacturers would have to take it upon themselves to fill the void, I wrote. In the days since, I’ve been genuinely awestruck by the reports of companies taking up the call. But the truth is, the void is too big for industry to fill on its own.President Donald Trump has been reluctant to use the 1950s-era Defense Production Act that gives the government the power to press U.S. industry into service on matters of national need, preferring to orchestrate contributions on a volunteer basis. He did invoke it on Tuesday with regard to production of testing kits and masks, but that fails to address a crucial shortage in ventilators. It’s great that companies are willing to help on this front without being explicitly ordered to do so, but you still need some sort of a plan. Timing is one issue, with Cuomo arguing a more forceful implementation of the Defense Production Act that gave manufacturers the startup capital needed to repurpose factories could help speed things along. Another is that there are many smaller companies who may not have the capacity to make entire ventilators like Ford can, but could make parts or offer services, if only someone would give them some direction and organize them into workable partnerships. Perhaps the biggest is the question of distribution, as my colleague Joe Nocera has written: Who decides where the ventilators go once they are manufactured? Apart from the Ford partnership, GE has doubled its capacity of ventilator production since the start of the coronavirus crisis and plans to double it again in the second quarter. That is incredible and commendable. But who gets them? New York, which has the most cases in the U.S.? GE’s home state of Massachusetts? One of the many other countries around the world where GE does business? The government that’s willing to pay the most for them? I’m not trying to cast doubts on GE’s good intentions here, but these are impossible decisions for any company to make on its own. The federal government is sitting on a stockpile of 20,000 ventilators but has been reluctant to deploy all of those to New York, Cuomo said, with the Federal Emergency Management Agency offering a mere 400. “What am I going to do with 400 ventilators when I need 30,000?” he said. “You pick the 26,000 people who are going to die because you only sent 400 ventilators.” One argument made by the New York Times as to why Trump has been reluctant to apply the Defense Production Act more forcefully is because he doesn’t want to be blamed for how slowly shortages of protective gear and ventilators are addressed. Worded a different way, if true, he is shifting responsibility for that to CEOs who are simply trying to help their country in any way they can, and that is unsustainable. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said Sunday night on CBS’s “60 Minutes” that “there is an infinite amount of cash in the Federal Reserve. We will do whatever we need to do to make sure there’s enough cash in the banking system.”Roughly 12 hours later, the central bank backed up those words with its most aggressive action yet to combat the coronavirus-induced credit crunch. In a statement Monday morning, it announced open-ended purchases of U.S. Treasuries and agency mortgage-backed securities. The Fed will buy “in the amounts needed to support the smooth functioning of markets for Treasury securities and agency MBS.” Just a week ago, it had suggested caps of $500 billion of Treasuries and $200 billion of agency MBS. Large numbers, to be sure, but not quite a “whatever it takes” promise.But that’s not all. The Fed unveiled details about several other programs, which will provide up to $300 billion in new financing, including a Secondary Market Corporate Credit Facility, which allows the central bank unprecedented access to the U.S. credit markets. The Treasury will make an initial $10 billion investment in this special-purpose vehicle, which can then purchase corporate bonds rated triple-B or higher with no more than five years until maturity. Notably, it can also buy U.S.-listed exchange-traded funds that “provide broad exposure to the market for U.S. investment grade corporate bonds.”The Fed actually announced several more measures, but the moves to address the chaos in Treasuries and corporate bonds are likely the most immediately significant. That’s because a look at the debt markets since the collapse of Lehman Brothers Holdings Inc. shows that it’s governmental and nonfinancial corporate obligations that have ballooned in the past decade. So it’s no wonder that they’re responsible for straining the financial system this time around.During the weekend, I read “Firefighting: The Financial Crisis and Its Lessons,” by Ben S. Bernanke, Timothy F. Geithner and Henry M. Paulson Jr. I was struck by these lines in the introduction: “Financial crises recur in part because memories fade.”“It was fueled, as crises usually are, by a credit boom, in which many families as well as financial institutions became dangerously overleveraged, financing themselves almost entirely with debt. The danger was heightened because so much risk had migrated to financial institutions that operated outside the constraints and protections of the traditional banking system.”“The financial panic paralyzed credit and shattered confidence in the broader economy, and the resulting job losses and foreclosures in turn created more panic in the financial system.”Note how “families” and “financial institutions” are singled out as taking on too much leverage heading into 2008. No one denies that. But as I showed in this data visualization, households and banks haven’t increased their debt as a percentage of gross domestic product in the past decade. Whether because of increased regulations or simply because they were burned last time around, they’ve been relatively prudent with taking on debt.The same can’t be said of nonfinancial corporations. Encouraged by rock-bottom interest rates from the Fed, Corporate America ramped up its borrowing, with companies in many cases willingly allowing their credit ratings to slide and using debt proceeds to buy back stock. The market value of the Bloomberg Barclays investment-grade corporate bond index, a proxy for the size of the broad market, has grown from about $1.8 trillion in October 2008 to more than $6 trillion as of this month. The Institute of International Finance estimates that global nonfinancial corporate debt has grown by some $27 trillion since the 2008 crisis.When writing about this in September 2018, when the Fed was still raising interest rates and trimming its balance sheet, I said that “all the talk about global central banks beginning a ‘great unwind’ of their extraordinary monetary stimulus is positively quaint,” given the buildup in debt over the decade. Monday’s extraordinary actions by the Fed, in truth, never seemed a matter of “if,” but rather “when” and “why.” The vast sums of bonds sloshing around in the financial system would be too great during times of stress not to cause precisely what Bernanke, Geithner and Paulson saw in 2008: “Paralyzed credit and shattered confidence in the broader economy.”There will be time later for Fed Chair Jerome Powell and Treasury Secretary Steven Mnuchin, among others, to reflect upon their time leading crucial U.S. institutions through this period. Like their predecessors, they’ll probably note that some companies became dangerously overleveraged and couldn’t withstand the economic shock from the coronavirus outbreak. That conveniently skims over the conditions that encouraged the huge debt buildup in the first place. But retrospection does the Fed little good in the moment. “Once it’s clear that a crisis is truly systemic, underreacting is much more dangerous that overreacting,” Bernanke, Geithner and Paulson concluded. The markets and the economy have reached that level of systemic risk. So Powell and his colleagues, learning from the lessons of 2008, stand ready to do near-infinite quantitative easing and whip up as many new facilities as needed across markets to restore stability. The time for worrying about doing too much passed the moment the central bank announced a 100-basis-point interest-rate cut less than three days before its scheduled decision.Technically, $250 trillion of debt isn’t infinite. But it’s far more than the global financial system can handle when staring down an unknowable economic shock. The markets have always seen the Fed as having virtually unlimited power. In a world full of leverage, we’re witnessing the central bank deploy the heavy artillery like never before.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- The Federal Reserve can and probably will do more to support financial markets and the economy after rolling out a string of aggressive interventions over the past week, Minneapolis Fed President Neel Kashkari said.“Some people have suggested that we should be providing more support directly to the corporate bond market -- and I’m sympathetic with those views -- and also the municipal market, making sure that states and cities are able to access the capital markets as well,” Kashkari said in an interview on CBS’s “60 Minutes,” recorded Thursday and aired Sunday evening.“There is a range of things the Federal Reserve could do,” Kashkari, the former Treasury official who oversaw the bank bailouts in 2008, said. “We’re far from out of ammunition.”Financial markets have come under severe stress in recent weeks amid investor panic over the coronavirus outbreak and its impact on the U.S. economy.Fed officials intervened on March 15 by slashing short-term interest rates to essentially zero and restarting bond-buying programs to pump hundreds of billions of dollars of cash into the banking system.Over the past week, they’ve also redeployed a number of crisis-era emergency lending facilities in a bid to keep credit flowing throughout the economy.The moves haven’t been enough to assuage investors, who continued to sell Sunday evening when stock futures markets reopened. Congressional leaders haven’t yet come to an agreement on emergency economic relief over the weekend as government-mandated lockdowns spread across the country, shuttering businesses and idling millions of workers.Kashkari said the key lessons from the 2008 experience were that policy makers “should all be erring on the side of overreacting to try to avoid the worst economic outcomes,” which means going big with the relief package and not worrying about how targeted the measures are.“My advice to Congress, as they’re designing their programs to help workers and to help small businesses: err on being generous,” he said.Earlier Sunday, speaking in a Bloomberg News interview, St. Louis Fed President James Bullard warned that unemployment could soar to a record-high 30% in the second quarter -- and the economy could shrink by 50% -- if lawmakers don’t formulate an adequate response to the crisis.(Adds comments from Kashkari starting in eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
What to watch across all BET platforms the week of March 19- 25, including "Tyler Perry’s Ruthless" on the premium streaming service BET+, New episodes of "Tyler Perry’s Sistas," "Twenties" and "Boomerang" on BET, "Being" on BET Her, "Finding" on BET’s YouTube Channel and more.
Nickelodeon announced today’s launch of KidsTogether, a global, multiplatform prosocial initiative using its most popular characters and talent to engage with kids and families on tips for staying healthy and also ideas for activities to do together while in the home. Featuring SpongeBob SquarePants, Blue’s Clues & You!, Henry Danger, Bubble Guppies and The Casagrandes, KidsTogether is intended to serve as an additional resource for parents while providing kid-appropriate, kid-directed information through original short-form videos, interstitials, downloadable activities and social content, with elements aggregated for easy access on a central online destination, NickHelps.com.
Ad Age Reporter Jeanine Poggi joins Yahoo Finance’s Alexis Christoforous and Brian Sozzi to discuss how coronavirus has impacted advertising in movies, TV and sports.
As more and more people are encouraged to stay home, its no surprise that the movie industry would be hit hard. Yahoo Finance’s The First Trade breaks down the details.
Coronavirus has led the NBA, MLS, and NHL to suspended their seasons, and the NCAA cancelled the March Madness tournament. LightShed Partner Richard Greenfield joins The Final Round to discuss what that means for media stocks like Disney.
BET’s "Twenties" takes off in the ratings on its debut night, grossing 1.9 Million viewers 2+ during premiere night across premieres and encores* (simulcast across BET and BET Her on 3/4/20). The night grossed 719k viewers in the P18-49 demo. Hailed as a "bright new comedy" by Rolling Stone, and "sharply written and hilariously relatable" by Rotten Tomatoes who have also ranked it "100% Certified Fresh," "Twenties" logged double-digits-L+3 ratings lift vs. L+SD number. "Twenties" episode one grew +44% in Live + 3 (Adults 18-49) and episode two grew +46% in Live + 3 (Adults 18-49). New episodes of "Twenties" air Wednesdays at 10 PM ET/PT on BET followed this week by the second season premiere of "BOOMERANG" at 10:30 PM ET/PT.
Coronavirus is probably the 1 concern in investors' minds right now. It should be. We estimate that COVID-19 will kill around 5 million people worldwide and there is a 3.3% probability that Donald Trump will die from the new coronavirus (read the details). In these volatile markets we scrutinize hedge fund filings to get a […]
The coronavirus is impacting Hollywood and the global box office. Yahoo Finance's Alexandra Canal breaks down the latest. Zack Guzman & Kristin Myers, along with CapitalistBook.com Author Nathan Latka join in on the conversation.
While value investing hasn’t necessarily been the decade’s most beloved strategy, no one is a bigger proponent than billionaire Seth Klarman. The tactic, which has been a favorite of fellow Wall Street gurus like Warren Buffet and Benjamin Graham, involves seeking out stocks that appear cheap when compared to their peers based on a price-to-earnings basis. For quite some time, investors have been shying away from the strategy as the Russell 1000 Growth Index has outperformed the Russell 1000 Value Index since 2007.Even though the billionaire’s $29 billion hedge fund, Baupost Group, returned significantly less than the broader market in 2019, Klarman has defended the tactic. He believes that “selling pressure of value names has contributed to mis-pricings that represent potential opportunity for long-term investors”, arguing that value investing will pay off when “the rocket fuel that propelled markets in 2019 will run out.”It should also be noted that value stocks are typically cheaper, making them more likely to hold up during times of volatility, especially important given the market’s recent dramatic swings.Taking all of this into consideration, we used TipRanks’ Stock Comparison feature to look at 3 value stocks Klarman’s fund snapped up in the most recent quarter side-by-side. The tool revealed that each is not only Buy-rated, but also boasts some hefty upside potential. Here’s what we found out.Eldorado Resorts (ERI)Based in Reno, Nevada, Eldorado Resorts owns and operates 28 properties throughout the country, making it one of the top casino entertainment companies. In the fourth-quarter, Klarman's fund decided to acquire a stake in ERI, pulling the trigger on 389,026 shares worth over $23.2 million.Back in February, ERI reported that adjusted EBITDAR came in at $146.2 million, falling $1.3 million below Deutsche Bank’s Carlo Santarelli’s forecast. Having said that, the five-star analyst still views its long-term growth narrative as being strong, specifically citing its possible merger with Caesars. “Given the CZR upside yesterday, as well as recent trading action and the valuation dislocation created by said action, we don’t think the $1.3 million shortfall…will be overly meaningful,” he commented.Part of the issue when it comes to ERI is that due to the coronavirus induced sell-off, names inhabiting the regional gaming space have taken a significant portion of the impact. According to Santarelli, this is because gaming stocks “are levered equities and in a risk off environment, this is what tends to happen, they happen to be more trafficked in by trading oriented investors, and some, including ERI to a lesser extent, have had considerable moves higher on longer term aspirations that likely extend beyond investment horizons.”Despite the fact that like other players in the space, ERI has taken some major hits over the last few years, each drop of more than 20% has ultimately presented a compelling opportunity. This scenario is likely to play out this time around, in the Deutsche Bank analyst’s opinion.With ERI potentially being able to acquire financing and the Caesars merger likely to close, the deal is sealed for Santarelli. Along with his reiteration of a Buy rating, the analyst bumped up the price target from $66 to $68. Should the target be met, shares could be in for a 96% twelve-month gain. (To watch Santarelli’s track record, click here)Looking at the consensus breakdown, the rest of the Street is on the same page. 3 Buys and 1 Hold add up to a Strong Buy consensus rating. The $61.67 average price target puts the upside potential at 80%. (See Eldorado stock analysis on TipRanks)HP Inc. (HPQ)The tech giant best known for its printers and PCs has also found itself under Klarman’s microscope.Representing a new holding for the fund, Baupost spent $205.5 million to purchase 10 million HPQ shares during the fourth quarter. Based on its most recent quarterly results, the Street has also been thouroghly impressed. For EPS, HPQ flew past the consensus estimate if $0.54, with the result coming in at $0.65. On top of this, a stable revenue trajectory can be attributed to continued positive PC performance and EPS upside driven by impressive margins across both PCs and printing.That being said, the real takeaway for Amit Daryanani of Evercore ISI is that the company broke the news of a buyback program. This program stands to push shares significantly higher and is a better option than the Xerox tender offer, in the analyst’s opinion. “We think HPQ presented a credible and aggressive shareholder return policy that is an attractive alternative to the XRX $24 per share offer, which would be done heavily on HP’s balance sheet,” he noted.Daryanani points out that during a call with management they stated “HPQ remains open to a combination with XRX but needs to agree on value ascribed to HPQ, responsible capital structure and a realistic synergy target.” He added, “We think the call was incrementally insightful to understand HP’s framework going forward, though we think there remains a probability that HP could bid for XRX and in that scenario the buybacks could be more muted but FY22 EPS could end-up being higher. Our sense is investors likely prefer HPQ doing the $16 billion buyback vs. acquiring XRX.”As HPQ’s A3 platform has the superior cost structure compared to its peers and there are potential opportunities for margin expanision, Daryanani’s bullish thesis remains intact. Bearing this in mind, the five-star analyst reiterated an Outperform call and $26 price target, suggesting 23% upside potential. (To watch Daryanani’s track record, click here)What does the rest of the Street think? It turns out that other analysts take more of a cautious approach. With 2 Buys and 5 Holds, the consensus rating lands at a Moderate Buy. At $26, the average price target matches Daryanani’s forecast. (See HP stock analysis on TipRanks)ViacomCBS (VIAC)As one of the leading producers of premium entertainment content, ViacomCBS connects billions of people located all over the world. While shares have shed 49% of their value in the last six months, some members of the Street see the weakness as a buying opportunity.During the fourth quarter, Klarman’s fund added VIAC shares to its portfolio, 17 million to be exact. The new holding, which is worth $713.5 million, makes up 7.9% of the total portfolio.As for the analyst community, several believe that VIAC still looks like a solid buy even after it reported lackluster quarterly results. For Q4, not only did the figures land well below the Street’s predictions, but the outlook for 2020 OIBDA was also seen as a disappointment; management guided for $5.8-6.1 billion compared to the consensus’ $6.141 billion. Given this development, investors have expressed concerns about VIAC’s investment spend.Wolfe Research analyst Eric Katz doesn’t dispute the fact that the print was somewhat of a red flag, but argues that now, the worst could be behind Viacom. “Viewing the stock from a rosier lens, we believe mgmt. threw in the ‘kitchen sink’ for this Q4 report and we expect to see improvement in H2’20…At this point, it feels like a lot of the bad news is priced in with the stock trading at only 6.3x ’20E OIBDA & 5.5x ’20 EPS,” he explained.Additionally Katz highlights its new 3-pronged strategy for the year ahead. “At the new VIAC, the new strategy will focus on: 1) maximizing its content globally and across many platforms, with spend directed at growthier areas (i.e. streaming); 2) accelerating topline growth by leveraging its scale across distribution, advertising, and content licensing; and 3) continuing its strong momentum in streaming – VIAC already has 11 million domestic streaming subs and generates $1.6 billion in revenue,” he stated.Based on all of the above, Katz is optimistic about the stock’s long-term growth prospects, reiterating his bullish call. Even though he reduced the price target from $52 to $40, this still leaves room for a possible twelve-month gain of 82%. (To watch Katz’s track record, click here)Out on Wall Street, VIAC’s Moderate Buy consensus rating breaks down into 10 Buys, 8 Holds and 2 Sells assigned in the last three months. The $41.11 average price target brings the upside potential to 87%, just above Katz’s forecast. (See ViacomCBS stock analysis on TipRanks)
It'll be the phattest high school reunion ever when Cher Horowitz and the Class of 1995 come back to the big screen as Fathom Events and Paramount Pictures celebrate the 25th anniversary of writer-director Amy Heckerling's film "Clueless" for three days only this May.
PLUTO TV ACCELERATES ITS MISSION TO ENTERTAIN THE PLANET INTRODUCING NEW FEATURES, BRAND IDENTITY AND CAMPAIGN