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UPDATE: Stifel Nicolaus Initiates Starz at Sell on on Margin Compression Concerns

Stifel Nicolaus initiated coverage on Starz (NASDAQ: STRZA) with a Sell rating.

Stifel Nicolaus noted, "While the company continues to generate strong amounts of free cash flow and has studio output deals until 2016, we see the business as experiencing margin compression over the next few years as recent subscriber agreements come at lower pricing coupled with a ramp in original programming costs. Longer term, we have considerable concern over the terminal value of the business given the leverage of its last remaining studio output partner

Starz closed at $16.10 on Thursday.

Latest Ratings for STRZA

DateFirmActionFromTo
Sep 2014National AllianceDowngradesBuyHold
Jun 2014Goldman SachsInitiates Coverage onNeutral
May 2014National AllianceInitiates Coverage onBuy

View More Analyst Ratings for STRZA
View the Latest Analyst Ratings

Posted-In: Stifel NicolausAnalyst Color Initiation Intraday Update Analyst Ratings

 

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