- 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. current $27.13).
- It's also maintaining a Neutral on AMC Networks (NASDAQ:AMCX), with a $29 target (26% upside); Disney (NYSE:DIS), with a $136 target (9.5% upside); Discovery (NASDAQ:DISCA), with a $22 target (9% upside); and Interpublic Group (NYSE:IPG), with a $19 target (7% upside).