CuriosityStream upgraded to Outperform from Market Perform at Barrington

Barrington upgraded CuriosityStream (CURI) to Outperform from Market Perform with a $6 price target following the Q1 report. Management expressed confidence in the company’s ability to sustain positive free cash flow generation to support the dividend with additional content licensing relationships, the analyst tells investors in a research note. The firm says that while the current quarter’s dividend represents more than 100% payout ratio on CuriosityStream’s projection for free cash flow in Q2, its improving free cash flow trajectory since the company instituted the dividend is “particularly encouraging.” Management’s expectation of additional opportunities to grow licensing revenues suggest that this increase to 32c per year may be sustainable, adds Barrington.