Barclays Starts AMC Networks (AMCX) at Underweight; Near-term Acquisition Unlikely
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Price: $12.43 +1.97%
Rating Summary:
11 Buy, 14 Hold, 6 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
11 Buy, 14 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays initiates coverage on AMC Networks (NASDAQ: AMCX) with a Underweight.
Barclays analyst says, "We are initiating coverage of AMC Networks with a Underweight rating and a price target of $32 based on 1) expensive valuation relative to cable pure-plays Scripps Network (NYSE: SNI), Discovery (Nasdaq: DISCA), and Viacom (NYSE: VIA-B), 2) limited upside for affiliate fee growth, 3) moderating ad revenue growth vs. peers, 4) a 2-year waiting period for a tax-free sale, and 5) high relative leverage. Our target of $32 implies a 2012 EV/ EBITDA multiple of 9.0x, which is about a half turn premium to the cable pure-plays. At current levels, we prefer shares of SNI and VIAB, which we rate Overweight."
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 $43.50 yesterday.
Barclays analyst says, "We are initiating coverage of AMC Networks with a Underweight rating and a price target of $32 based on 1) expensive valuation relative to cable pure-plays Scripps Network (NYSE: SNI), Discovery (Nasdaq: DISCA), and Viacom (NYSE: VIA-B), 2) limited upside for affiliate fee growth, 3) moderating ad revenue growth vs. peers, 4) a 2-year waiting period for a tax-free sale, and 5) high relative leverage. Our target of $32 implies a 2012 EV/ EBITDA multiple of 9.0x, which is about a half turn premium to the cable pure-plays. At current levels, we prefer shares of SNI and VIAB, which we rate Overweight."
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 $43.50 yesterday.
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