Nielsen delivered weaker-than-expected Q3 results on Tuesday, sending the company’s stock cascading downward by nearly 17%.
The root of Nielsen’s failure to meet Street expectations is decelerated growth in its “Buy” segment, which focuses on consumer research and reports sold to Fortune 500 companies for marketing and product development.
While there were some bright spots in the “Watch” segment, which includes Nielsen’s TV and radio ratings services, Pivotal Research Group Sr. Research Analyst/Advertising Brian Wieser slightly reduced his target price for Nielsen shares.
At the same time, Morgan Stanley equity analyst Toni Kaplan remains concerned that Nielsen will not be able to achieve its Free Cash Flow guidance.
