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Corus Entertainment: Hold Rating Maintained Amid Revenue Decline, Debt Concerns, and Leadership Transition

Corus Entertainment: Hold Rating Maintained Amid Revenue Decline, Debt Concerns, and Leadership Transition

BMO Capital analyst Tim Casey has maintained their neutral stance on CJREF stock, giving a Hold rating on June 24.

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Tim Casey has given his Hold rating due to a combination of factors impacting Corus Entertainment. The company’s recent financial performance showed a decrease in revenue and free cash flow, although there was an improvement in EBITDA and adjusted EPS. Despite these positive aspects, the overall advertising revenue outlook remains weak due to ongoing economic uncertainties and challenges in the linear advertising market.
Additionally, Corus Entertainment faces significant debt obligations, which raises concerns about its ability to manage and repay this debt, even though the company has some flexibility with its amended credit facility through 2026. The transition in leadership with a new CEO and the uncertain timing of regulatory funding benefits further contribute to the cautious outlook. These factors combined have led Tim Casey to maintain a Hold rating on the stock, reflecting a balanced view of the potential risks and opportunities facing the company.

In another report released on June 24, RBC Capital also maintained a Hold rating on the stock with a C$0.20 price target.

CJREF’s price has also changed slightly for the past six months – from $0.065 to $0.071, which is a 9.23% increase.

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