Seaport starts Versant with Buy on digital platform opportunity

Seaport Research analyst David Joyce initiated coverage of Versant (VSNT) with a Buy rating and $45 price target The company operates in the “unpopular” linear cable network space, but is positioned to use its high cash flow generation to invest in digital platforms, the analyst tells investors in a research note. The firm says that while Versant’s genres and sports exposure “should insulate it well,” the shares trade below other companies with linear cable network exposure on a forward EBITDA multiple basis. Seaport thinks the stock should reach $45 in the next year as its platform growth and sports rights opportunities become more clear.