Analysts Conflictied on These Services Names: Viacom Inc. (NASDAQ: VIAB) and Sunoco LP (NYSE: SUN)

By Austin Angelo

Analysts have been eager to weigh in on the Services sector with new ratings on Viacom Inc. (NASDAQ: VIAB) and Sunoco LP (NYSE: SUN).

Viacom Inc. (NASDAQ: VIAB)

FBR Capital analyst Barton Crockett reiterated a Buy rating on Viacom Inc. (NASDAQ: VIAB) on November 9. The company’s shares closed yesterday at $38.01.

According to TipRanks.com, Crockett is a 5-star analyst with an average return of 5.3% and a 56.3% success rate. Crockett covers the Services sector, focusing on stocks such as Liberty Media Corporation Series A Liberty SiriusXM Common Stock, Cinemark Holdings Inc, and Regal Entertainment.

Currently, the analyst consensus on Viacom Inc. is Moderate Buy and the average price target is $43.82, representing a 15.3% upside.

In a report issued on October 31, Jefferies also reiterated a Buy rating on the stock with a $44 price target.
Sunoco LP (NYSE: SUN)

In a report released yesterday, Robert Balsamo from FBR Capital reiterated a Hold rating on Sunoco LP (NYSE: SUN), with a price target of $32. The company’s shares closed yesterday at $24.98, close to its 52-week low of $22.86.

Balsamo observed:

“Distributable cash flow of $124 million was ~11% above FBR estimates of $112 million, driven primarily by a $14 million income tax benefit. Operationally, SUN’s volumes appeared weak while the margins exceeded our forecast, largely offsetting. Leverage remains a key concern as SUN finished the quarter with 5.9x debt/adjusted EBITDA, which remains within its amended covenant level of 6.25x but will need to come down materially before the ratio resets to 5.5x in 1Q17.”

According to TipRanks.com, Balsamo is ranked 0 out of 5 stars with an average return of -11.0% and a 50.0% success rate. Balsamo covers the Basic Materials sector, focusing on stocks such as Calumet Specialty Products, Dcp Midstream Partners Lp, and EnLink Midstream Partners.

Sunoco LP has an analyst consensus of Hold, with a price target consensus of $26.50.