Bank of America double upgrades ViacomCBS, says it's a likely acquisition target

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

Investors should bet on ViacomCBS in anticipation of a potential acquisition or other transaction in the wake of the massive merger agreement between Discovery and WarnerMedia, according to Bank of America.

Analyst Jessica Reif Ehrlich upgraded the stock on Thursday all the way to buy from underperform, saying ViacomCBS was a prime candidate to be involved in a major media deal in the near future. The upgrade follows last week's announcement from AT&T and Discovery of a $43 billion deal to combine Discovery with HBO's parent company.

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