Add Wells Fargo Securities’ Marci Ryvicker to the list of analysts who believe that Viacom shares have hit bottom after a year of dreary results — especially at its two flagship channels, Nickelodeon and MTV. Ryvicker upgraded Viacom this morning to “outperform” from “market perform” although she didn’t change her financial targets. The stock just recently recovered from the drubbing it took last September as it became clear that Viacom had big ratings problems. The target demo audience for Nickelodeon is -25.7% since then, while at MTV it’s -9.3%. But in about six weeks, comparisons with last year’s ratings and ad sales will “start to ease,” Ryvicker says. That’s “likely to be a catalyst for the stock, particularly as [Viacom] heads right into its financially significant period known as the ‘Hard 8′” — the eight weeks before the holiday shopping season when Nickelodeon makes most of its ad sales. She also believes that in the recent upfront ad sales season, Viacom made “conservative audience guarantees, which means fewer makegoods and better monetization in the upcoming scatter market.” On top of that, she’s encouraged about the new contract terms with DirecTV. Ryvicker expects to see a turnaround at Paramount with upcoming films including G.I. Joe: Retaliation, Star Trek 2, and World War Z. She adds, though, that the studio only accounts for 8% of Viacom’s operating income so it is “unlikely to materially move the needle.” Viacom shares are up 4.8% since the end of last August, and are +10% so far in 2012.
Wall Street Analyst Joins Viacom Bulls; The Worst “Is Over” For Nickelodeon Ratings
What's Hot on Deadline
M Night Shyamalan Unveils 'Glass': 'Unbreakable' & 'Split' Sequel To Star Bruce Willis, Samuel L Jackson, James McAvoy
Mindy Kaling & 3 Arts Option Alyssa Mastromonaco White House Memoir 'Who Thought This Was A Good Idea?' For TV
DC Digital Service To Launch With 'Titans' Series From Greg Berlanti & Akiva Goldsman And 'Young Justice: Outsiders'
Latest Film News
- California Bill To Boost Funding For Hollywood Job Training Passes Committee
- Studios & WGA Can’t Even Agree On Lost Revenues From Last Strike
- ‘Psychopaths’ Helmer Mickey Keating On His Altman-esque Approach To Horror — Tribeca Studio
- Tom Hanks, Jodie Foster, David Byrne, Meryl Streep Remember Jonathan Demme
- Nicolas Cage Breaks Ankle On Movie Set In Bulgaria
- ‘Dog Years’: Adam Rifkin Was Only Going To Make His Latest Movie With Burt Reynolds In The Lead Role – Tribeca…