Goldman Sachs analyst James Mitchell this morning shuffled his ratings on the major media stocks.
Upgrades:
- Disney (DIS): To Buy, from Neutral, with $42 price target. “We see parks and studio fueling a 2010-2011 upswing, and dominant assets within global growth categories (ESPN in sports viewing, Disney World in parks, Pooh and Princesses in consumer products) driving long term expansion,” he writes.
- News Corp. (NWSA): To Buy, from Neutral, with a $17 price target, citing “sector-low multiples, a history of share gains within categories offsetting unfashionable category mix, and catalysts in Fox News renewals and FOX retrans / reverse retrans contributions.”
Downgrades:
- Viacom (VIAA): To Neutral, from Buy, “due to price performance and less-well-understood secular
growth opportunities than we see at some entertainment peers.” - Time-Warner (TWX): To Neutral, from Buy, largely based on the view that there are better opportunities elsewhere. “We believe Time Warner has built an attractive portfolio of cable nets, with
a market-leading movie studio and magazine publisher,” he writes. “However, among entertainment majors, we favor Disney for 2010-2011 growth (parks and studio recoveries) and secular expansion (differentiated consumer products, parks, ESPN), and News Corp. for value, retrans, and international cable net growth.”
With the stock market getting battered today, all four stocks are trading lower today:
- DIS is off 62 cents, or 1.9%, to $32.60.
- NWSA is off 46 cents, or 3.6%, to $12.21.
- VIA is off $1.71, or 4.5%, to $36.12.
- TWX is off 89 cents, or 2.9%, to $29.62.
Disclosure: News Corp. is the publisher of this blog.
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