• Forbes.com, Friday, December 23, 2005 12:15 PM

According to a report in Forbes.com, Merrill Lynch's influential research analyst Jessica Reif Cohen, who covers the media, is generally optimistic about the sector for 2006. She said media and entertainment stocks would outperform the market and issued "buy" ratings on two companies, News Corp. and Viacom. Maya Roney, of Forbes.com, says that in Cohen's view "traditional media stocks deserve a premium multiple." Earnings-per-share growth is expected to be 15-to-20 percent for the sector, Cohen projects. She puts News Corp.'s price target at $28 per share and Viacom's at $41. She also likes the Walt Disney Company and Univision, both rated "buys." Cohen has a "sell" on two media companies: Discovery Holdings and Warner Music.

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