Rating Change: Dix and Time

rating change: At the same time, Analyst James Dix upgraded Viacom Inc, according to Market Watch. VIAB, +0.14% to outperform from neutral, also for valuation reasons, reversing a recommendation he made back in February 2013. "Our rating change is part of closing out a 'pair' trade from over three years ago," Dix wrote in a note to clients. "Today, we believe Time Warner shares are now fully valued while Viacom is undervalued. TWX, +0.85% was downgraded to neutral from outperform at Wedbush Securities, which cited concerns that the stock was overvalued following the recent rally. Therefore, our rating changes today reverse the prior changes." Although Dix is still upbeat about Time Warner TV programming production business, and the potential for higher earnings growth at HBO, he expects a more challenging economic environment for its basic and premium pay TV networks. CBS, -0.52% Even if there is no merger, he is upbeat about the potential for a sale of a stake in Paramount. For Viacom, Dix is now bullish because of the likely merger with CBS Corp. (news.financializer.com). As reported in the news.