BMO Capital analyst Tim Casey has maintained their neutral stance on WLDBF stock, giving a Hold rating on September 26.
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Tim Casey has given his Hold rating due to a combination of factors impacting WildBrain’s financial performance and strategic direction. The company’s recent quarterly results showed a mixed performance with a revenue increase of 6%, but a slight decrease in Adjusted EBITDA by 0.5%. While the earnings per share exceeded expectations, the overall financial outlook is tempered by lower distribution revenues and weaker margins.
Furthermore, the discontinuation of WildBrain’s television business following unsuccessful carriage agreement renewals with major operators like BCE and Rogers adds uncertainty to its future operations. Although the company is focusing on core intellectual property and licensing growth, challenges remain in free cash flow conversion and debt reduction. These factors contribute to a cautious outlook, justifying the Hold rating as the company navigates these transitions.
In another report released on September 26, RBC Capital also maintained a Hold rating on the stock with a C$2.50 price target.