Macquarie Raises Starz (STRZA) PT to $28 as

Macquarie analyst, Amy Yong, is warming to Starz's (NASDAQ: STRZA) strategic view and noting many investors are keen for a Starz-Lionsgate partnership. She finds the subscriber growth and programming cost stabilization as encouraging and thinks the emergence of a digital strategy and rebranding effort could reinvigorate fundamentals but the numbers are not compelling enough for an upgrade. PT goes to $28 from $27 but no change to the Neutral rating.

Over the top subscription services have been adding 50-60k/mo; we expect Starz could see a similar trend. At US$9/mo, pricing is very competitive, lower than HBO and Showtime at ~US$15/mo and ~US$11/mo. For distribution, Starz has partnered with Apple and Google; it's also available for Amazon Prime members and on Roku.

It's increasingly important for Starz originals to gain traction and offset the reliance on Disney/Sony. Outlander S02 hit ~1.5m viewers, the highest for a Starz series premiere. For the rest of the year, the pipeline looks compelling with new shows including: The Girlfriend Experience S01 in 2Q and Close to the Enemy S01 in 4Q; shows coming back include: Power S03 in 2Q-3Q, Survivor’s Remorse S02 in 3Q-4Q, Blunt Talk S02 in 3Q-4Q and The Missing S02 in 4Q.

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

Shares of Starz closed at $27.21 yesterday.

You May Also Be Interested In

• Unicycive Therapeutics (UNCY) PT Raised to $15 at Benchmark Following Q2 Results
• Hims and Hers (HIMS) PT Lowered to $35 at Barclays
• Rubrik Inc (RBRK) PT Raised to $120 at Oppenheimer; Sees Another 'Beat and Raise'