Starz: Strategic OTT Pivot and 2026 Growth Targets Justify Valuation but Execution Risks Warrant Hold Rating

TD Cowen analyst Doug Creutz reiterated a Hold rating on Starz Entertainment Corp today and set a price target of $15.00.

Doug Creutz has given his Hold rating due to a combination of factors, including that Starz’s latest quarter met revenue expectations and modestly exceeded profit forecasts, yet overall sales still declined year over year and OTT revenue underperformed, partly because of heavy promotional activity. While management is pivoting from chasing subscriber growth to prioritizing higher‑quality, more profitable OTT customers, he believes investors should first see proof that this strategy can deliver durable top‑line expansion.

Creutz also notes that management’s 2026 outlook, featuring targeted OIBDA growth, stronger free cash flow, and gradual deleveraging, suggests the shares are attractively valued if those objectives are achieved, but execution risk remains meaningful. Upcoming owned content initiatives and the Bell Canada agreement should help margins and cash generation, and potential M&A in AVOD could add strategic value, yet the combination of recent revenue pressure and the need to validate the new operating focus supports a neutral, wait‑and‑see stance.