Starz Entertainment initiated with an Outperform at Raymond James

Raymond James analyst Brent Penter initiated coverage of Starz Entertainment (STRZ) with an Outper0form rating and $19 price target Starz is a “misunderstood asset” given its small size and the fact it has been hidden in the legacy Lionsgate structure under the “sexier” studio business since 2016, the analyst tells investors in a research note. The firm says that while Starz has a legacy as a premium cable channel, like HBO and Showtime, the service has gone through an “expensive” process to migrate to streaming and now 70% of revenue is from digital and streaming, with only 30% from linear. It finds the stock “quite attractive” at current levels.