Has ViacomCBS Made A Successful Pivot To Streaming With Its Paramount+?

After launching Paramount+ earlier this year, ViacomCBS Inc VIAC has shown “early signs of success” in its move to streaming and should exit fiscal 2021 with an estimated $5 billion in streaming revenues, according to BofA Securities.

The ViacomCBS Analyst: Jessica Reif Ehrlich maintained a Buy rating for ViacomCBS, with the price target unchanged at $53.

The ViacomCBS Thesis: The company’s success is likely to be driven by distribution deals for rapid subscriber additions and “a continued focus on premiere content and franchises to drive engagement,” Reif Ehrlich said in the note to clients.

“VIAC is poised to drive significant net adds in 2022 aided by their recently announced T-Mobile deal, Sky distribution agreement and SkyShowtime JV along with upcoming launches in several other international markets,” she commented.

“We believe these distribution deals will enable VIAC to achieve scale more rapidly and we would not be surprised to see more of these announcements in the coming months,” the analyst wrote.

“The company has a deep breadth of content that have a broad appeal and expands the potential TAM for their streaming service,” she added.

VIAC Price Action: Shares of ViacomCBS had declined by 0.74% to $35.34 at the time of publication Friday.