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Research Alert: CFRA Keeps Strong Buy Opinion On Shares Of Amc Networks

05/07/2021 13:04

05:00 PM EDT, 05/07/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target price by $20 to $58 on EV/EBITDA of 7.6x our '22 estimate, near its peers. We raise '21 and '22 EPS estimates by $1.20 and $1.53 to $8.80 and $9.55. We see further upside on continued monetization across an array of digital platforms. While increasingly pivoting to targeted streaming, AMCX still expects its five nascent streaming platforms (Acorn, Shudder, Sundance Now, UMC, and most recently including AMC+, the premium SVOD bundled offering) to reach 9M+ paid subscribers by the end of '21 (vs. 6M+ in '20) and 20M-25M by '25. But, with ratcheted streaming investments, it still sees a mid-single-digit decline in '21 adjusted EBITDA (vs. $767M in '20) and free cash flow near $200M (vs. $686M). Q1 adjusted EPS of $2.98 vs. $1.47 was $1.13 above the consensus. Revenue declined 6% with the domestic segment down 6% (ads and distribution down 7% and 6%) and the international/other division down 3% (distribution/other down 6% vs. ads up 11%). Adjusted EBITDA margin widened 410 basis points.