UPDATE: BofA Securities Downgrades CuriosityStream Inc. (CURI) to Underperform

June 18, 2021 6:06 AM EDT
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Price: $10.98 -0.09%

Rating Summary:
    5 Buy, 2 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 18 | Down: 14 | New: 23
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(Updated - June 18, 2021 7:15 AM EDT)

BofA Securities downgraded CuriosityStream Inc. (NASDAQ: CURI) from Buy to Underperform with a price target of $14.00.

The analyst comments "...while CURI will certainly benefit from the fact that 90% of its full year revenue guidance of $71mn is committed and contractual, we believe the following risks/headwinds could limit share price appreciation in the near/medium term: (1) visibility into quarterly revenue trends over the course of this year and thereafter is limited, particularly sponsorship and licensing streams; (2) investment activity into the business remains elevated in efforts to drive top-line growth while gross margins are likely to narrow as pre-licensing agreements become a larger portion of revenue mix; (3) CURI is still a very early stage company and EBITDA has come in below consensus expectations in each of its last 3 quarters as a public company, which should lead to a discount placed on projected forward EBITDA until visibility improves; (4) tough COVID comps in 2QE will likely lead to higher DTC (direct to consumer) churn; and (5) peers are accelerating content investments and consolidating (e.g., Amazon/MGM studios and Warner Bros. Discovery)—although as an offset we note that increased consolidation could also potentially make CURI an attractive acquisition candidate."

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

Shares of CuriosityStream Inc. closed at $14.80 yesterday.

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