New Credit Suisse Report on Media and Telecommunication, Plus Upfront Inflation Estimates

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Cover image for  article: New Credit Suisse Report on Media and Telecommunication, Plus Upfront Inflation Estimates

Through an agreement with Credit Suisse, MediaVillage subscribers can download an exceptional 68-page report "Winners & Losers in a Converging Marketplace," the first major report as Credit Suisse initiates coverage of media and telecommunications. Authored by research analysts Doug Mitchelson, Brian Russo, Meghan Durkin, and Grant Joslin, the data-rich report covers an extensive overview of media, wireless, cable and satellite companies, with clearly focused details on valuations, the impact of convergence, perspectives on increasing competition and consolidation, and insights into market influences. Covered companies, with individual reports available, are AT&T, Verizon, Altice USA, Charter, Comcast, Dish Networks, Sirius XM, Wide Open West, CBS, Walt Disney, Discovery, Fox, Netflix and Viacom.

Reporting on CBS, CS sees healthy EBITDA, EPS growth over the near/medium term, strong affiliate growth, stable advertising revenues, growing global content demand and manageable programming costs. Mitchelson believes a Viacom merger is unlikely at this point as the AT&T/TimeWarner ruling aids M&A prospects, giving CBS increased asset value support. Risks on the horizon include acrimony between management and the Redstones, ad/ratings downturns and long-term programming costs (esp. NFL renewal). They place the target stock price value at $66.

Long term, CS considers Disney to be "the best-positioned traditional media company" based on the company's leading brands, global presence and scale, upcoming U.S. affiliate renewal cycle and "terrific Theme Park growth prospects." 

Among the influences tracked by CS is the 2018-19 network television Upfront economy, which CS suggests is tracking very strong, while questioning how long advertisers will pay high single digit price increases for declining ratings.

Source: Credit Suisse Winners & Losers in a Converging Marketplace

To download the full Credit Suisse report "Winners & Losers in a Converging Marketplace" link here.

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