In this note we are modifying our financial models for video-centric media companies we cover. We are upgrading Disney from Sell to Hold and downgrading Time Warner from Buy to Hold, leaving all companies in the group at Hold ratings now, each trading +/-15% around our YE2018 price targets. The relative trading levels of CBS and Viacom and the potential synergies associated with a merger make them the most attractive on a relative basis, while our model pricing on Disney suggest it is the most expensive on a near-term basis. However, over longer time horizons Disney appears to be the best positioned of the group.
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