After jumping yesterday after Elliott Management disclosed an 8.4% stake in the company, shares of Nielsen (NLSN) are again on the rise this morning as Wall Street digests the announcement and two Wall Street firms upgraded the stock. Macquarie analyst Tim Nollen raised Nielsen’s rating to Outperform, saying the activist stake raises the possibility of a sale, while his peer at Barclays upgraded the shares to Equal Weight as he now sees limited downside in the stock and possible deal scenarios.

ACTIVIST STAKE: Yesterday, Elliott Asset Management disclosed an 8.4% stake in Nielsen in a filing with the SEC that allows for activism. Elliott collectively has beneficial ownership of 18M shares of common stock constituting approximately 5.1% of the shares outstanding and combined economic exposure in Nielsen equivalent to 30M shares, constituting approximately 8.4% of the shares outstanding. Elliott will encourage Nielsen to “undertake a full strategic review of, and initiate a process to explore, the sale” of the company in full, in addition to the exploration of the sale of certain of its businesses or assets, including transactions in which the fund “may seek to participate and potentially engage in, as a purchaser or investor”. 

MACQUARIE, BARCLAYS UPGRADE NIELSEN: In a research note to investors this morning, Macquarie’s Nollen upgraded Nielsen to Outperform from Neutral and raised his price target on the shares to $34 from $28. The analyst argued that Elliott Management’s 8.4% stake in Nielsen will result in either a sale of the entire company, splitting it in two, or selling the Buy division and keeping Watch as a public company. Given the early retirement of CEO Mitch Barns at the end of the year, a rapid sale process could ensure with private equity firms likely leading the way, he contended. While his peer at Barclays thinks Nielsen’s prospects as a standalone public company “remain grim,” analyst Manav Patnaik upgraded the stock to Equal Weight from Underweight given limited downside now that Elliott Management has acquired an 8.4% stake and is pushing for a sale of the entire company. The analyst also raised his price target on the shares to $27 from $21, assuming a 60% likelihood of outright sale for $32 per share, with lower scenarios for just a Buy sale.