We are moving ViacomCBS (VIAC) to a SELL
With the shares continuing to surge past our recently raised 65 price target and now being priced at a premium to even our upgraded valuation metrics, we are moving the shares to a SELL.
ViacomCBS’ fundamentals look healthy, so our call is driven by the valuation. The shares are increasingly becoming a “growth story” and have moved beyond the “turnaround story” that is the focus of our strategy. The company reports earnings on Wednesday, February 24.
VIAC shares have produced a total return of approximately 19% from our initial recommendation in the January 2017 Cabot Turnaround Letter at 59.57 (adjusted for the Viacom-CBS merger) and a 77% year-to-date gain for investors who purchased shares last year.