ViacomCBS: BMO Defends Target, Upgrades Rating

ViacomCBS has had a very rocky week, which started when the company announced after hours on March 22, that they would be diluting existing shareholders by selling $2 billion of its Class B shares and $1 billion of its convertible class A shares. The company dropped 9% the next day. The next day they priced their offerings at $85 and $100, respectively.

This started the tumble that ended up wiping more than half of the company’s market value off in just a week as prime brokers ultimately had to sell the equity that was tied to billions of dollars worth of swaps they underwrote to a single-family office.

ViacomCBS currently has 27 analysts covering the company with a weighted 12-month price target of $57. This is up from the average from last month of $45. Only one analyst has a strong buy, while four analysts have buy ratings. The majority, twelve analysts have hold ratings, while nine analysts have sell ratings and only one analyst has a strong sell rating. The street high comes from Benchmark with a $120 12-month price target.

On Monday, BMO Capital Markets reiterated their $70 price target and upgraded their rating from underperform to market perform. Their analyst, Daniel Salmon says that there has been no fundamental change and writes, “We think it could make sense to get more proactive if the stock remains under pressure and heads below our $35 fundamental downside scenario.”

He adds, “We move back to Market Perform after recent downward price performance. While our unchanged target of $70 implies considerable upside, we think Market Perform is more appropriate at least until trading volatility clears.”


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Filo Mining: BMO Lifts Price Target To $28 Following Assay Results

This past week, Filo Mining Corp. (TSX: FIL) reported its updated assay results from three...

Sunday, April 24, 2022, 05:01:00 PM

Mind Medicine: Canaccord Maintains Ratings Following Financial Results

On Friday, November 13th, Mind Medicine (NEO: MMED) reported their third quarter 2020 financial results....

Tuesday, November 17, 2020, 10:17:00 AM

Verano Holdings: Analysts Expect $122 Million In EBITDA For Q2

Verano Holdings (CSE: VRNO) announced that they will be reporting their second quarter financials before...

Sunday, August 8, 2021, 05:10:00 PM

Cresco Labs: Canaccord, Eight Capital Raise Price Targets

Cresco Labs (CSE: CL) reported its second-quarter 2020 financials yesterday, posting revenue growth of 42%...

Friday, August 21, 2020, 04:03:00 PM

Tilray: Canaccord Lowers Target On Expected Adult-Use Sales Slump, Revised Hexo Deal

Earlier this week, Tilray Brands (TSX: TLRY) announced an update to their strategic alliance with...

Friday, June 17, 2022, 10:49:29 AM