“With the pending Discovery merger with AT&T’s Warner Media business, ViacomCBS now looks like a potential acquisition target, according to BofA Global Research media analyst Jessica Reif Ehrlich.”
“She lifted her rating on the stock by two notches from Underperform to Buy, setting a price target of $53, for a potential gain of 33% from Wednesday’s close.” Excerpt from – Barrons VIAC article dated May 20, 2021.
VIAC Daily Chart
We already have a position in the (VIAC) June 42 calls and will look for further evidence of buying interest in the stock and options in the coming days. Viacom shares are up 1.13%, to $41.99 in early trading, with S&P 500 futures 0.41% higher (4171.00). Click to enlarge chart.
VIAC is building a first-stage flat base. We are anticipating the stock could form a new chart pattern or a follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line. We’ll most likely add to our position if we see more buying activity on Friday into next week.
Viacomcbs Inc Cl B (VIAC) has posted three-quarters of rising earnings growth. Topline growth has also increased during the same period. Viacom CBS Cl B (VIAC) reported 1st Quarter March 2021 earnings of $1.52 per share on revenue of $7.4 billion. The consensus earnings estimate was $1.22 per share on revenue of $7.3 billion. The Earnings Whisper number was $1.24 per share. Revenue grew 11.1% on a year-over-year basis.
The company holds the No. 12 rank among its peers in the Media-Diversified industry group. Fox Corp Cl A (FOXA) and Grupo Televisa (TV) are also among the group’s highest-rated stocks.
VIAC 60 Minute Chart
The stock is showing signs of breaking out on this 60-minute time frame, in addition to trading (+1.28%) this morning. The pre-market high was 42.27 (+/-).
Join us today in the trading room for our LIVE broadcast during market hours, as we discuss VIAC prospects while navigating the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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Disclosure: As an #ibdpartner, that means my use of investors’ business daily suite of services is complimentary. I also receive compensation from the company for my technical analysis services.