BMO Capital analyst Tim Casey has maintained their neutral stance on WLDBF stock, giving a Hold rating on December 20.
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Tim Casey has given his Hold rating due to a combination of factors related to both balance sheet improvement and ongoing operational uncertainty. The sale of WildBrain’s 41% interest in Peanuts to Sony for $630 million removes the company’s leverage, generates meaningful interest savings, and leaves WildBrain with excess cash that can be redeployed into higher-margin, owned brands such as Strawberry Shortcake and Teletubbies, as well as digital and technology initiatives. This monetization also came at a rich multiple relative to the company’s overall valuation, underscoring that WildBrain has effectively cashed out of its most valuable asset to stabilize its finances.
At the same time, the core business now relies more heavily on its remaining portfolio, and pro forma EBITDA for the ongoing operations is expected to be materially lower than pre-transaction levels, in the roughly $30–35 million range. While Strawberry Shortcake and Teletubbies are showing strong growth and management sees sizable runway in consumer products, WildBrain continues to operate in a challenging industry backdrop where streaming platforms emphasize cash generation over content volume and traditional TV networks are in decline. In light of these structural headwinds and the lack of detailed pro forma financials, Casey has paused detailed quarterly forecasts and is waiting for clearer visibility on sustainable free cash flow before taking a more constructive stance on the stock. As a result, the balance of improved financial flexibility against execution and industry risks supports maintaining a Hold recommendation at this stage.
Casey covers the Communication Services sector, focusing on stocks such as Telus, BCE, and Rogers Communication. According to TipRanks, Casey has an average return of 7.0% and a 58.69% success rate on recommended stocks.
In another report released on December 20, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a C$2.00 price target.