We reduce our 2016/17 EPS forecasts by 14%/19% to $3.68/$4.25, driven by lower forecasts for Paramount, and reduce our TP to $42 (previously $53). The long term earnings recovery potential from restructuring Cable Networks and returning Paramount to profitability remains substantial, in our view, and the management changes make it more, not less, likely that this can be achieved. We remain OP.
Viacom: More Earnings Pain, Huge Recovery Potential -- Credit Suisse Equity Research
