ViacomCBS is Deutsche Bank analyst’s ‘top pick in media’

Noted Deutsche Bank analyst Bryan Kraft has provided ViacomCBS with an upgrade while calling it his “top pick in media”.

The analyst upgraded ViacomCBS from hold to buy, and increased his price target to US$43 from US$39. He noted that the media giant could be re-rated higher and that the company provides investors with “greater success in streaming, and potential industry consolidation as megacap tech sets its sights on becoming bigger streaming players, while current media industry players also potentially look for additional scale opportunities.”

Kraft however addressed concerns surrounding ViacomCBS’s leadership and cautioned that while its ““Intellectual property might not as strong as Disney or WarnerMedia” the company “does have intellectual property that has and continues to create hits, as demonstrated by the recent success of this season’s Yellowstone premier, as well as the premier of prequel 1883.”

The analyst concluded that “while not everyone will succeed in streaming,” ViacomCBS “has an opportunity “to transition its business model successfully given its content portfolio (including sports rights), brands, globally sourced content production model and an approach to the market that includes on-demand entertainment, linear channel feeds, sports and news in all three streaming formats – subscription, subscription + advertising and free ad supported streaming.”

Kraft added that ViacomCBS’s investor event later this quarter will “provide a more granular view” into the business and serve as a “positive catalyst for the stock given the new segmentation and disclosure.”