Story updated at 9:45 a.m. to reflect market activity.
Nielsen gained 0.7% to $47.71 in morning trading.
The firm set a price target of $55 for the company. Nielsen's rating was driven by growth in global middle class, the modernization of global trade, and media fragmentation.
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Separately, TheStreet Ratings team rates NIELSEN HOLDINGS NV as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate NIELSEN HOLDINGS NV (NLSN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- NLSN's revenue growth has slightly outpaced the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 12.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 150.00% and other important driving factors, this stock has surged by 28.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- NIELSEN HOLDINGS NV reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NIELSEN HOLDINGS NV increased its bottom line by earning $1.13 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($2.50 versus $1.13).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 65.7% when compared to the same quarter one year prior, rising from $35.00 million to $58.00 million.
- Net operating cash flow has significantly increased by 66.66% to $90.00 million when compared to the same quarter last year. In addition, NIELSEN HOLDINGS NV has also vastly surpassed the industry average cash flow growth rate of 10.64%.
- You can view the full analysis from the report here: NLSN Ratings Report