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Viacom's CEO switch won't change the company, analyst says

Shareholder: We think Viacom is a bargain right now
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Shareholder: We think Viacom is a bargain right now

Shares of Viacom dipped more than 4 percent Monday after the company announced a resolution to a governance dispute that resulted in CEO Philippe Dauman's resignation.

Tom Dooley will serve as Viacom's interim CEO.

Pivotal Research Group downgraded Viacom's stock in early August to "hold" from "buy" because of the company's earnings report. On Monday, Pivotal senior analyst Brian Wieser said the leadership change may not bring much of a shift for Viacom.

"Dooley, while very competent and very capable, doesn't represent a meaningful difference from having Dauman in charge," Wieser said.

The Viacom headquarters in New York.
Lucas Jackson | Reuters

Wieser noted that Paramount's performance has affected Viacom and that box office results are raising investors' concerns.

"The outlook for the core businesses are, frankly, worse than expected at operating basis," said Wieser. "What's really difficult to tell is how much this is truly just because of all the distractions internally."

Another analyst that Viacom's stock is still a good choice.

"We think Viacom is a bargain. We believe in the franchise value of the businesses," said Salvatore Muoio, founder of SM Investors. "Although there has been weakness, they've been buffeted by changes in distribution and new entrance in over-the-top providers. We see that they've been adapting."

Viacom's stock has risen 4.7 percent in the last year.