Vizio downgraded to Hold from Buy at Craig-Hallum

Craig-Hallum downgraded Vizio (VZIO) to Hold from Buy with a price target of $11.50, up from $9, after Walmart (WMT) announced the $2.3B acquisition of Vizio, providing shareholders with an $11.50 exit, representing over 50% upside from pre-rumor share price. The deal is logical for Walmart, which is looking to bolster its retail media network as it looks to compete with Amazon’s (AMZN) $50B ad business, the firm says. Craig-Hallum sees logic for Vizio as well, given recent pressures on the consumer electronics industry, which has seen slower sales and intensifying pressure on margins from new entrants. Finally, the firm views this as a positive for Vizio investors, which were likely looking at continued headwinds in the hardware business for the foreseeable future, capping near-term valuations despite solid execution by the ad sales team.