AMC Networks (AMCX) Sell-Off 'Overdone', Piper Jaffray Says

Piper Jaffray analyst Stan Meyers believes the sell-off in AMC Networks (NASDAQ: AMCX) is now overdone. As such, he reiterated an Overweight rating and price target of $90.

"Across our cable networks coverage universe we believe AMCX was unjustly treated in the Q2 earnings broader media sell-off," he said. "While AMCX has significant exposure to domestic pay-TV bundle, our model already incorporates continued decline in subs at a 1% CAGR, offset by a 6% growth in affiliate fee revenue per sub. More importantly, the company is evolving into a content creator and diversifying internationally."

He added, "In sum, we believe AMC’s success in scripted dramas (rating up 38% over the past 3 years), combined with a rapid shift towards full ownership of its content translates into a powerful catalyst for the stock. We see the recent 15% sell-off as a great entry point ahead of one of the major catalysts for the stock: the premiere of Fear The Walking Dead (FTWD), which we estimate to deliver $55M in ad revenue in Q3."

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 $72.94 yesterday.

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