Buy Nielsen despite spinoff delay

Article Excerpt

The COVID-19 pandemic has forced Nielsen to delay the spinoff of its Global Connect business until 2021. Even so, we’re confident the plan will ultimately reward investors with a stake in two pure-play companies, better focused on improving their core businesses. NIELSEN HOLDINGS PLC $15 is a spinoff buy for aggressive investors. The New York-based company (New York symbol NLSN; Manufacturing & Industry sector; Shares o/s: 356.5 million; Market cap: $5.3 billion; Dividend yield: 1.6%; Takeover Target Rating: Medium; www.nielsen.com) is a provider of information and measurement services to give companies a better understanding of consumer behaviour. It’s best known for its Nielsen TV ratings. The company has two main businesses. Its “Buy” operating segment, known as Global Connect, provides retailers and packaged-goods manufacturers with sales and market-share data. The Global Media “Watch” operating segment comprises the core television-and-media ratings businesses. It has been doing significantly better than the Buy unit. Nielsen came under pressure last year from activist investor Elliott Management. After Elliott pushed Nielsen to pursue a..