VIACA - ViacomCBS lower again as MoffettNathanson latest to downgrade

ViacomCBS has come out of the open lower again ([[VIAC]] -1.7%, [[VIACA]] -2.5%) after yet another 2021 downgrade; this time MoffettNathanson cut its rating to Sell, from Neutral. There are trade-offs as companies transition into streaming powers, analyst Michael Nathanson says. He notes that as more premium content is shifted to direct-to-consumer platforms, the industry risks higher cord-cutting and greater viewer erosion, which will end up hurting ViacomCBS. Looking at the linear-to-DTC trade-off overall, "we are left questioning how this will end up as a good trade," Nathanson says. He also notes higher execution risk in ramping up the company's new Paramount Plus subscribers, and implications for linear networks (as U.S. pay-TV distributors have more reasons to push back on affiliate fees going forward with the NFL in a cheaper tier). The firm has a $55 price target, implying another 20% downside. The Street is Neutral on ViacomCBS now, while

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ViacomCBS lower again as MoffettNathanson latest to downgrade