Viacom (VIAB) Stock Climbs Further on Liberty Media Malone's Comments
NEW YORK (TheStreet) -- Shares of Viacom (VIAB) - Get Report are higher by 4.55% to $45 in mid-afternoon trading on Friday after John Malone, chairman of Liberty Media (LMCA), contended that the company's cable assets are "substantially undervalued."
Malone added that he has no interest in investing in Viacom's Paramount Pictures movie studio, which hopes to sell a minority stake.
But Wunderlich is unconvinced that Liberty Media would get directly involved with Viacom stock, Barron's reports.
"Malone's comment that if it were his choice, he would not get involved in the Paramount theatrical business is interesting wordsmithing, as even his high confidence in [Lions Gate (LGF)]'s management might be challenged in financing a Paramount bid," the firm wrote in a note.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
Viacom's strengths such as its compelling growth in net income, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: VIAB
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.