AMC Networks (AMCX) PT Lowered to $8 at UBS

UBS analyst John Hodulik lowered the price target on AMC Networks (NASDAQ: AMCX) to $8.00 (from $9.00) while maintaining a Sell rating.

The analyst commented, "AMCX reported mixed 4Q results (1-2% lower revenues/AOI; better FCF) while '25 guidance missed the Street. Revenues fell 12% y/y (UBSe -11%), driving the full year core decline to -6% (ex M&A and one-timers). Adjusted operating income increased 29% y/y (UBSe +33%), finishing the year at -16%. Guidance for '25 includes a similar 5% revenue decline to ~$2.3B (prior UBSe $2.30B, Street $2.39B) with pressure in linear TV and lower licensing but accelerating streaming growth. Along with growth in opex (incl. duplicative costs for outsourcing initiatives and higher DTC marketing), AMCX guided to $400-420M of AOI in '25E (prior UBSe $453M, Street $485M), a 27% decline at the midpoint. FCF was slightly ahead in 4Q (+$38M, UBSe -$11M) and ended the year at $330M. Mgmt increased its combined '24-25 outlook ~10% to $550M, implying FCF of $220M in '25E given higher interest, the lapping of prior year production tax incentives and top-line pressure (UBSe $227M, largely unch.). On capital allocation, gross debt reduction remains the priority (UBSe 3.4x net leverage at YE25 vs. 2.8x at YE24). We expect the emphasis on cash generation to continue but remain cautious on secular headwinds in linear TV and maintain our Sell rating."

You May Also Be Interested In

• Microsoft (MSFT) PT Lowered to $400 at Stifel
• Freedom Capital Starts Klarna (KLAR) at Buy
• ICON plc (ICLR) PT Raised to $150 at BofA Securities