VIACA - Morgan Stanley sees near-term upside for ViacomCBS

Another day, another sell-off in ViacomCBS ([[VIAC]] -5.1%, [[VIACA]] -4.2%) - but Morgan Stanley for one now thinks the market is underestimating likely near-term growth in streaming services (and therefore prospects for Paramount Plus). The firm rates the stock Equal Weight, and says the recent pullback (spurred by heavy block trades amid the blow-up of Archegos Capital) has mitigated concerns about valuation that were there earlier in the spring. And despite near-term gains to be head, Morgan Stanley still sees longer-term uncertainty around the earnings power of streaming, and the global appeal of Paramount Plus. But its (now trimmed) price target of $50 now implies 26% upside. Street firms are Neutral on ViacomCBS overall, while Seeking Alpha authors are Bullish. The stock has a Quant Rating of Neutral.

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Morgan Stanley sees near-term upside for ViacomCBS