Deutsche Bank Lifts Price Target on Viacom as Ad Revenue Improves (VIAB)

Deutsche Bank Lifts Price Target on Viacom as Ad Revenue Improves (VIAB)

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Analysts at Deutsche Bank increased the price target on media company Viacom, Inc. on Friday due to promising first quarter earnings results.

Deutsche Bank maintained a “Buy” rating on VIAB and now sees shares reaching $65, up from the previous target of $62. This valuation suggests a +7% upside to Friday’s closing price of $60.54.

Deutsche Bank commented, “Viacom’s ad revenue is starting to turn the corner, improving from domestic adv -6.3% Y/Y in C3Q12 to -2% in C1Q13 and potentially growing thereafter, while affiliate revenue growth remains strong at 10%. If Viacom continues to improve ratings its networks could return to margin expansion in FY14 and beyond, sparking further revaluation for shares. Return of capital remains strong ($2.6b for FY13, 9% of shrs out, plus a 2.4% dividend).”

Viacom shares were flat during pre-market trading on Monday. The stock is up +25.19% over the past year.

The Bottom Line
Shares of Viacom (VIAB) have a dividend yield of 1.82% based on Friday’s closing price of $60.54.

Viacom, Inc. (VIAB) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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