Analyst Doug Creutz from TD Cowen reiterated a Hold rating on Versant Media Group and increased the price target to $35.00 from $32.00.
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Doug Creutz has given his Hold rating due to a combination of factors, including solid quarterly execution but limited visibility into sustainable upside. Versant exceeded expectations on both revenue and EBITDA, helped by a sizable one-off licensing agreement for “Keeping Up with the Kardashians,” and management maintained full-year guidance while authorizing additional share repurchases, supporting a modest upward revision of the price target to $35.
However, the core business remains under pressure, with year-over-year declines in total revenue and profit and ongoing headwinds in linear distribution as cord cutting persists, despite rate increases. Management also signaled higher sports rights expenses and increased SG&A investment in the second half of the year, and the unusually large Kardashian deal is unlikely to recur, leaving growth more dependent on still-unproven initiatives such as the MS NOW DTC offering and Fandango’s AVOD launch, which together argue for a neutral stance at current valuation.
Creutz covers the Communication Services sector, focusing on stocks such as Live Nation Entertainment, Warner Bros, and Starz Entertainment Corp. According to TipRanks, Creutz has an average return of 13.7% and a 62.18% success rate on recommended stocks.
In another report released on May 12, J.P. Morgan also initiated coverage with a Hold rating on the stock with a $43.00 price target.