BTIG Downgrades AMC Networks (AMCX) to Neutral

October 28, 2013 12:41 PM EDT
Get Alerts AMCX Hot Sheet
Price: $56.51 -0.55%

Rating Summary:
    17 Buy, 13 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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BTIG downgraded AMC Networks (NASDAQ: AMCX) from Buy to Neutral. The change follows news AMC Networks reached a definitive agreement to acquire Chellomedia, the international content division of Liberty Global (Nasdaq: LBTYA) for €750 million (approximately $1.035 billion USD).

"Given the relative maturity of the US market for cable networks vs. international markets, we can see the long-term attractiveness/logic of the Chellomedia acquisition for AMCX, not to mention making AMCX more attractive to buyers down the road if it can execute well on the acquisition and its new slate of domestic original programming," said analyst Richard Greenfield.

"That being said, with AMCX shares just off their all-time high and the changed risk profile, we are downgrading AMCX to NEUTRAL from BUY and removing our price target. We estimate AMCX is trading at 10.6x 2013 estimated EV/EBITDA and 9.0x 2014 estimated EV/EBITDA," he added.

For an analyst ratings summary and ratings history on AMC Networks click here. For more ratings news on AMC Networks click here.

Shares of AMC Networks closed at $70.36 yesterday.

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