ViacomCBS plans to raise $3 billion in stock offerings to invest in streaming content. Shares of the diversified mass media conglomerate fell 3.1% in Monday’s extended trading session following the announcement.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
ViacomCBS (VIAC) said that the new $3 billion stock offerings comprise of two concurrent offerings of $2 billion worth of its Class B common stock and $1 billion of its Series A Mandatory Convertible Preferred Stock.
The company said that the net proceeds from the stock sale will be invested in its streaming services and other general corporate purposes. Morgan Stanley and J.P. Morgan will act as joint book-running managers for the stock offerings. (See ViacomCBS stock analysis on TipRanks)
On Feb. 22, Benchmark Co. analyst Daniel Kurnos raised the stock’s price target to $120 (19.6% upside potential) from $80 and maintained a Buy rating. Kurnos expects VIAC to crush near-term estimates and sees shares trending higher.
Overall, the Street has a Hold consensus rating on the stock based on 8 Holds, 5 Buys and 7 Sells. The average analyst price target of $58.41 implies downside potential of about 41.8% to current levels. Shares have skyrocketed over 762% over the past year.
Related News:
Santander To Pay Special Dividend Of $0.22 Per Share
PPL To Divest U.K. Utility Business For $10.5B
Hartford Receives Takeover Bid From Chubb
