BTIG Starts AMC Networks (AMCX) at Buy, Forecasts Being Acquired by 2013, $48 Price Target
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Price: $11.33 -1.48%
Rating Summary:
11 Buy, 13 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
11 Buy, 13 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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BTIG initiates coverage on share of AMC Networks (Nasdaq: AMCX) with a Buy rating and $48 price target.
Where as AMC used to be known as a network that played mostly old movie, it is now receiving notability for its new hit shows which are experiencing solid ratings. The firm believes that the company will be able to raise its advertising sales over the course of the next couple of years substantially.
Around 90 percent of the company's subsidiary's have rates locked in through the end of 2012. BTIG currently estimates mid-single digit increase, but notes that if rating continue to increase, double-digit growth is very conceivable.
The firm believes AMC will really begin to see some substantial cash flow growth by the end of 2012 with roughly $4/share in fully-taxed cash flow by 2013. BTIG forecasts buybacks in 2012 as the company will have a large amount of cash and not to much debt.
An analyst from BTIG comments, "Given our view that AMCX has not held talks to sell itself over the past couple of years, we believe they would not run into IRS difficulties if takeover bids came in early 2012. However, we suspect the company will want to wait a bit longer to monetize itself, given the ramp in ratings and the potential for meaningful affiliate fee step-ups in 2013 and beyond. Given the relatively small size of AMCX, we see a long list of potential buyers including strategics such as NBCU, CBS Corp. (NYSE: CBS) and Time Warner (NYSE: TWX), in addition to financial buyers."
For more ratings news on AMC Networks click here and for the rating history of AMC Networks click here.
Shares of AMC Networks closed at $2.40 yesterday, with a 52 week range of $-$.
Where as AMC used to be known as a network that played mostly old movie, it is now receiving notability for its new hit shows which are experiencing solid ratings. The firm believes that the company will be able to raise its advertising sales over the course of the next couple of years substantially.
Around 90 percent of the company's subsidiary's have rates locked in through the end of 2012. BTIG currently estimates mid-single digit increase, but notes that if rating continue to increase, double-digit growth is very conceivable.
The firm believes AMC will really begin to see some substantial cash flow growth by the end of 2012 with roughly $4/share in fully-taxed cash flow by 2013. BTIG forecasts buybacks in 2012 as the company will have a large amount of cash and not to much debt.
An analyst from BTIG comments, "Given our view that AMCX has not held talks to sell itself over the past couple of years, we believe they would not run into IRS difficulties if takeover bids came in early 2012. However, we suspect the company will want to wait a bit longer to monetize itself, given the ramp in ratings and the potential for meaningful affiliate fee step-ups in 2013 and beyond. Given the relatively small size of AMCX, we see a long list of potential buyers including strategics such as NBCU, CBS Corp. (NYSE: CBS) and Time Warner (NYSE: TWX), in addition to financial buyers."
For more ratings news on AMC Networks click here and for the rating history of AMC Networks click here.
Shares of AMC Networks closed at $2.40 yesterday, with a 52 week range of $-$.
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