MoffettNathanson’s latest look at media/Internet names raises the specter of whether the sector is in a bubble – comparing current valuation approaches to those taken in the dot-com bubble-and-crash of 1999-2000.
But the firm sees some long-term value in premium names due to structural tailwinds; that includes names it’s Neutral on, like Roku (NASDAQ:ROKU), where it’s raised its price target to $170 from $145, and Netflix (NASDAQ:NFLX), where it maintains a target of $390.
On the positive side, it still sees Fox (NASDAQ:FOXA) as a Buy due to fundamentals and an attractive valuation. It’s bumped that price target to $37 from $36 (implying 42% upside).
And on the downside, it thinks Omnicom (NYSE:OMC) has limited upside and rates it a Sell. Its price target of $45 implies 11.5% downside.
The firm reiterated its Neutral rating on ViacomCBS (NASDAQ:VIAC) but raised its price target to $27 from $25 (vs.