Field Day for Media Stocks, With Viacom Hitting All-Time High

By Sterling Wong  APR 08, 2013 4:13 PM

Disney, AMC Networks, and CBS were also up on the day.

 


Shares of entertainment conglomerate Viacom (NASDAQ:VIAB) hit an all-time high in intraday trading on Monday after Nomura Securities reaffirmed its Buy rating on the stock and raised its price target.
 
As of 3:47 p.m. EDT, Viacom was trading at $65.43 per share after hitting a high of $65.44 earlier in the day.
 
Normura analyst Michael Nathanson had reiterated his Buy rating on Viacom in the morning, and also raising his target by $2 to $68.
 
According to Nathanson, the ratings trend at Viacom’s TV channels, including Nickelodeon, MTV, BET, and Comedy Central, was ticking upwards, which would enable the entertainment giant to improve its advertising revenue.
 
"We believe that the combination of a very cheap multiple, improving aggregate kids 2-11 viewing trends, increases in Nick’s ratings, and the potential for improving second-half 2013 kids 2-11 film advertising makes Viacom a continued name to own," he wrote in a report.
 
“We believe Viacom's low relative multiple will continue to rise in expectation of positive earnings trends to come later in FY13," Nathanson continued.
 
Viacom was not the only Hollywood stock that popped in today’s trading. Disney (NYSE:DIS) touched $58.78, also an all-time high. As of 3:48 p.m. EDT, it was at $58.65. The stock has enjoyed a robust run in recent weeks, setting a slew of record highs along the way.
 
Earlier, Disney announced that it will lay off some 150 workers at its Walt Disney Studios music and theatre divisions. The company is also closing down its LucasArts videogame division, letting go of another 150 employees in the process.
 
Meanwhile, Time Warner (NYSE:TWX) shares peaked today at $58.27, which is near its 52-week high of $58.68. It was trading at $58.20 as of 3:49 p.m. EDT. AMC Networks (NASDAQ:AMCX), whose highly-buzzed series Mad Men returned for a sixth season last night, also matched its 52-week high of $64.06, while CBS Corporation (NYSE:CBS) improved 1.98% to $46.10 in late afternoon trading.

Also see:

US Tech Overseas: eBay Expands in India; Zynga Plays Poker, Facebook Joke Causes Stir in China

The Basics on Bitcoin: 11 Things to Know About This Suddenly 'Hot' Digital Currency

Could a New BlackBerry Tablet Be More Than Just an April Fools' Joke?

Twitter: @sterlingwong



 
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.