New Target for Viacom as Shares Rise6/08/2007 8:00 PM Eastern
Miller Tabak media analyst David Joyce maintained his “buy” rating on Viacom, increasing his 12-month price target to $51 from $45, citing a better than expected price for a recent asset sale and what he sees is a turnaround in its once-anemic stock price.
Joyce said in a research note that Viacom received about $370 million for the sale of its Famous Music music-publishing business to Sony ATV, about $70 million more than he expected. Viacom’s recent financial performance is beginning to pay dividends in an increased stock price. Viacom shares are up 18% ($6.87 each) in the past six months.
“We are increasing our price target on Viacom to $51 from $45 to reflect a mix of cable-network and studio entertainment businesses that are demonstrating the turnaround investors have started hoping for,” Joyce wrote.