Update (9:50 a.m.): Updated with Wednesday market open activity.
NEW YORK (TheStreet) -- Argus upgraded Scripps Networks Interactive (SNI - Get Report) to "buy" from "hold" and set a $100 target price. The firm noted that HGTV and Food Channel remain key growth drivers.
The stock was rising 0.3% to $79.01 shortly after the market opened on Wednesday.
Separately, TheStreet Ratings team rates SCRIPPS NETWORKS INTERACTIVE as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SCRIPPS NETWORKS INTERACTIVE (SNI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SNI's revenue growth has slightly outpaced the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 8.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.70, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 4.29, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, SCRIPPS NETWORKS INTERACTIVE's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- Net operating cash flow has increased to $255.31 million or 36.30% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -13.15%.
- You can view the full analysis from the report here: SNI Ratings Report