Viacom, Disney Stocks Hit All-Time Highs
The stocks of Hollywood conglomerates Viacom and Walt Disney hit all-time highs on Monday.
Viacom's stock hit a high since at least its separation from CBS Corp. after one Wall Street analyst slightly raised his price target and reiterated his "buy" rating on the shares.
As of noon, the stock of the conglomerate led by CEO Philippe Dauman was up 2.3 percent at $64.51 after hitting a high of $65.25. Viacom's stock performance before the 2006 separation from CBS Corp. is difficult to compare since it included the value then attributed to CBS.
Meanwhile, Disney's stock hit $58.54 in the morning trading session, also an all-time high. As of noon, it was up 0.5 percent at $57.96. Disney CEO Robert Iger recently lauded the stock's strong run, which has seen the shares set a slew of highs in recent weeks.
Disney will lay off workers at its film studio and its consumer products division in an effort to cut costs, it recently emerged. Its LucasArts also recently decided to cut 150 employees. The studio layoffs will come primarily from the marketing and home video units, with a smaller number coming from animation.
Time Warner shares, meanwhile, went as high as $58.27 in early trading, close to their 52-week high of $58.68.
Nomura analyst Michael Nathanson early in the morning raised his price target on the stock of Viacom by $2 to $68.
"We believe that the combination of a very cheap multiple, improving aggregate kids 2-11 viewing trends, increases in Nick’s ratings and the potential for improving
second-half 2013 kids 2-11 film advertising makes Viacom a continued name to own," he wrote in a report.
He added: Viacom’s low relative multiple will continue to rise in expectation of positive earnings trends to come later in fiscal year 2013."