Deutsche Bank Downgrades Viacom (VIAB) to Hold

Deutsche Bank downgraded Viacom (NASDAQ: VIAB) from Buy to Hold with a price target of $56 (unchanged). The downgrade follows recent share price gains.

"Our rating change is the result of the recent strength in the stock, appreciating ~35% from its low on 8/26 to bring the stock within $4 of our PT," said analyst Bryan Kraft.

"While Viacom's valuation multiples still constitute the low end of the sector range, we think this will persist given our projected growth outlook, which is lower than the rest of the media companies for structural reasons. Specifically, we think general entertainment non sports/non-live event advertising has been in decline for the industry, and this trend will continue, while Viacom lacks sports to offset the impact. Further, we think Viacom's affiliate growth outlook is lower than others' because it has less tent-pole programming and no sports," added the analyst.

For an analyst ratings summary and ratings history on Viacom click here. For more ratings news on Viacom click here.

Shares of Viacom closed at $52.71 yesterday.

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