Barrington analyst James Goss has reiterated their neutral stance on VZIO stock, giving a Hold rating today.
James Goss has given his Hold rating due to a combination of factors impacting VIZIO Holding Corp. The company’s fourth-quarter financial performance exhibited revenue that exceeded expectations, despite a competitive market leading to lower device sales. The decline was mitigated by the robust growth of their advertising segment, Platform+, which outperformed guidance and contributed to an increase in the company’s overall margin. Furthermore, the company’s ability to maintain a solid market position in a challenging device landscape, coupled with a notable increase in EBITDA driven by Platform+ advertising growth, were significant considerations in Goss’s assessment.
The potential acquisition of VIZIO by Walmart at a valuation of $2.3 billion also plays a crucial role in the Hold rating. While the deal awaits regulatory review, its completion would offer a substantial premium over the stock’s trading levels for the past year. Goss acknowledges the possibility of a superior offer during the 45-day window VIZIO has to entertain other bids, yet he also recognizes the limited likelihood of such an event. The market’s competitive nature following the acquisition and the premium offered price are key factors supporting the decision to maintain a Market Perform rating, reflecting a cautious optimism balanced with recognition of the existing transaction’s value to shareholders.
In another report released today, Piper Sandler also downgraded the stock to a Hold with a $11.50 price target.
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VIZIO Holding (VZIO) Company Description:
VIZIO Holding Corp operates two distinct integrated businesses: Device and Platform+. Through Device business, it offers a range of high-performance Smart TVs designed to address specific consumer preferences, as well as a portfolio of soundbars that deliver immersive audio experiences. It generates revenue from the shipment of these devices to retailers and distributors across the United States, as well as directly to consumers through the website. The Platform+ business includes a state-of-the-art Smart TV operating system, SmartCast, which delivers a vast amount of content and applications through an easy-to-use interface.
Read More on VZIO:
- VIZIO Enhances Investor Relations with Transparency Updates
- Vizio downgraded to Equal Weight from Overweight at Wells Fargo
- Roku downgraded to Underweight from Equal Weight at Wells Fargo
- VZIO Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Senator Warren says regulators should scrutinize Vizio, Walmart deal
