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UPDATE: Deutsche Bank Initiates Starz at Hold on Lack of Valuation Catalysts

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Deutsche Bank initiated coverage on Starz (NASDAQ: STRZA) with a Hold rating and a $16.00 price target.

Deutsche Bank commented, "We expect investors will remain concerned that future distribution renewals will incur price setbacks, similar to the recent renewals, while being reluctant to presume the necessary TV content success for Starz. With our outlook being flatish revenue and EBITDA, that leaves only deployment of FCF, a potential digital deal or M&A to drive Starz's stock. It is unclear how aggressively FCF will be returned to shareholders, but a stock repurchase plan would be well received. We do not expect a digital deal given mgmt's requirement that Starz be offered on a premium tier, which Netflix has already turned down."

Starz closed at $15.69 on Friday.

Latest Ratings for STRZA

Sep 2015MacquarieDowngradesNeutral
Aug 2015FBN SecuritiesUpgradesSector PerformOutperform
Aug 2015Morgan StanleyDowngradesOverweightEqual-weight

View More Analyst Ratings for STRZA
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Posted-In: Deutsche BankAnalyst Color Initiation Intraday Update Analyst Ratings


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