UPDATE: Sterne Agee Initiates Coverage on Starz with Buy Rating, $26.50 PT on Positive Trend

In a report published Thursday, Sterne Agee analyst Vasily Karasyov initiated coverage on

with a Buy rating and $26.50 price target. In the report, Sterne Agee noted, “We believe the consensus is too focused on the top-line challenges Starz faces, and overlooks the positive trend in programming costs in 2013 and underestimates the management's commitment to share repurchase. We rate STRZA shares a Buy with a 12-month price target of $26.50.” Starz closed on Thursday at $21.71.