Doug Creutz, an analyst from TD Cowen, reiterated the Hold rating on AMC Networks (AMCX – Research Report). The associated price target remains the same with $6.00.
Doug Creutz has given his Hold rating due to a combination of factors impacting AMC Networks’ financial performance. The company’s Q1:25 revenue slightly missed both his and the consensus estimates, with domestic revenue declining more than anticipated due to reduced advertising income. Although the adjusted operating income was in line with expectations, the adjusted EPS fell short due to higher minority interest and taxes.
Despite these challenges, management has maintained its full-year guidance for revenue, AOI, and free cash flow, indicating some confidence in future performance. However, the ongoing pressure from linear headwinds and the slower-than-expected growth in streaming revenue contribute to a cautious outlook. The expectation of accelerated streaming growth later in the year, driven by price increases, provides some optimism, but the current uncertainties justify a Hold rating.
Creutz covers the Communication Services sector, focusing on stocks such as Playtika Holding, AMC Networks, and Paramount Global Class B. According to TipRanks, Creutz has an average return of 16.9% and a 63.59% success rate on recommended stocks.