RBC upgrades ViacomCBS, sees buying opportunity from streaming growth and Archegos sell-off

Signage on the ViacomCBS headquarters during a winter storm in New York, U.S., on Friday, Feb. 19, 2021.
Mark Kauzlarich | Bloomberg | Getty Images

ViacomCBS' decline from the Archegos implosion has cut deep enough, and streaming growth gives the stock significant upside, according to RBC Capital Markets.

Analyst Kutgun Maral upgraded the stock on Friday to outperform from sector perform, saying that streaming growth outweighed struggles in the cable TV business. Shares of Viacom have declined more than 60% after touching $100 in March. The sell-off came after Archegos, the family office led by hedge fund veteran Bill Hwang, failed to meet margin calls and led to liquidations of blocks of shares from major banks.