Analyst Doug Creutz of TD Cowen reiterated a Hold rating on Starz Entertainment Corp, retaining the price target of $15.00.
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Doug Creutz has given his Hold rating due to a combination of factors impacting Starz Entertainment Corp. The company reported weaker-than-expected financial results for Q2:25, with both revenue and adjusted OIBDA falling short of estimates. This underperformance was largely attributed to the disappointing performance of BMF Season 4, which led to a decline in domestic OTT subscribers.
Despite these challenges, there are signs of improvement with the recent successful premiere of Outlander: Blood of My Blood, which has boosted subscriber trends. However, the overall pattern in recent years has shown more frequent declines in direct-to-consumer subscribers, raising concerns about the company’s ability to stabilize its subscriber base annually. While the stock appears undervalued and there are plans to reduce content costs, the need for Starz to demonstrate consistent subscriber stabilization remains a key consideration in maintaining the Hold rating.
In another report released on August 15, Morgan Stanley also maintained a Hold rating on the stock with a $14.00 price target.
Based on the recent corporate insider activity of 42 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.