NLSN - Embedded Expectations Analysis - 2019 05 03
Nielsen Holdings plc (NLSN:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 22.0x Uniform P/E. At these levels, the market has muted expectations for the firm, and management has concerns about their digital platform expansion, media industry trends, and their IT and product investments.Specifically, management may lack confidence in their ability to expand their digital platform, integrate a public cloud architecture, and increase vendor connections through their client architecture. In addition, they may be exaggerating their ability to adapt to media trends, monetize advertiser audiences, and deliver addressable TV advertising. Moreover, they may be overstating their currency position, share of the fast-moving consumer growth platform industry, and focus on execution. Also, management may lack confidence in the potential of their product and machine learning investments, as well as their ability to offset servicing revenue and GAAP net income losses, and reverse audio segment declines.
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