ViacomCBS Inc (NASDAQ: VIAC) started the year at a strongly bullish note rallying about 175% to hit the $100 mark in March. In the subsequent months, however, the mass media and entertainment conglomerate gave up the entire gain to trade at $41 a share at the time of writing.
Things, however, could spice up again, as per Wells Fargo, which upgraded the American multinational to ‘overweight’ on Wednesday with a price target of $60 that translates to a roughly 50% potential upside from here.
ViacomCBS partners with Comcast to launch SkyShowtime
The announcement comes on the heels of the Nasdaq-listed company’s partnership with Comcast to launch SkyShowtime – a new streaming service in Europe to compete with heavyweights like Disney Plus and Netflix. VIAC is up about 6.0% today.
“VIAC’s streaming efforts are bearing fruit and have impressed us, so we move from historical bears to constructive bulls. The upcoming slate for Paramount+ should maintain the momentum, and we think the company is one of the better bets for industry consolidation. Hulu-esque valuation for streaming drives the upside to our new, $60 price target,” said Wells Fargo analyst Steven Cahall.
Highlights from Cahall’s interview with CNBC’s “TechCheck”
On CNBC’s “TechCheck”, Cahall said that Amazon’s interest in owning MGM and Discovery’s merger with Warner Media indicates there is interest in owning content, which could see ViacomCBS eventually become a takeover target.
“Viacom is one of the most at-scale content companies out there. I think all the major players, whether they have a lot of content and need distribution, or have a lot of distribution and need content, put something like Viacom on their long-term radars,” he added.
Earlier this year in June, Comcast refuted a WSJ report that it was hunting for M&A deals.
The post Wells Fargo sees a 50% upside in ViacomCBS stock: here’s why appeared first on Invezz.
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Wajeeh Khan
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