There Are Several Buying Opportunities Among Beaten-Down Media Stocks

Media Stocks have been hit hard by selling pressure in the past year, but Deutsche Bank analyst Bryan Kraft sees the dip as a buying opportunity for selective media investors. In a new report, Kraft adjusts Deutsche Bank’s price targets on several top media stocks and reveals which names are the firm’s top picks for investors.

“We believe the underperformance of media stocks over the past year combined with fundamentals that are more stable now than most thought they would be 6 months ago have created a selective buying opportunity in media stocks,” Kraft explains. He notes that valuations of several top names are currently at multi-year lows.

Related Link: El-Erian: Chinese Concerns 'Legitimate,' Market Reaction 'Excessive'

National TV ad revenue growth was flat in 2015, and Deutsche Bank is projecting it to be slightly positive in 2016 before dipping modestly into negative territory in 2017.

Deutsche Bank has lowered its price targets for Walt Disney Co DIS from $114 to $113, for Twenty-First Century Fox Inc FOXA from $40 to $37 and for Viacom, Inc. VIAB from $56 to $38. The lone target upgrade is Time Warner Inc TWX, which Deutsche Bank has raised from $88 to $93.

The firm’s top media stock picks include Buy-rated Time Warner, Fox, CBS Corporation CBS and Starz STRZA.

Disclosure: the author holds no position in the stocks mentioned.