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.
FREE Dividend Stock Newsletter
Get the Dividend.com email newsletter to receive:
- A free copy of our acclaimed report, 5 Rules of Winning Dividend Stock Investing
- Free daily investing tips and picks from Dividend.com CEO Paul Rubillo
- Tons of great market analysis and recommendations