Morgan Stanley analyst Thomas Yeh has maintained their neutral stance on STRZ stock, giving a Hold rating on October 30.
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Thomas Yeh has given his Hold rating due to a combination of factors impacting Starz Entertainment Corp. One of the primary considerations is the company’s relatively smaller size compared to its competitors, which limits its ability to grow its subscriber base or exert significant pricing power. This size constraint affects its investment levels and potential market influence.
Additionally, while there is a plan to reset cash content spending over the coming years, which could potentially enhance EBITDA if revenues remain stable, there are risks involved. These risks include the possibility of increased subscriber churn due to a newer content slate or underinvestment. Furthermore, although there was a modest improvement in streaming subscribers, it was not sufficient to counterbalance the declines in linear revenues and ARPU pressure, which continue to weigh on overall revenue performance.
In another report released on October 30, TR | OpenAI – 4o also upgraded the stock to a Hold with a $10.00 price target.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of STRZ in relation to earlier this year.