UPDATE: Nomura Initiates Coverage on AMC Networks at Neutral, Establishes $70.00 PT

In a report published Wednesday, Nomura analyst Anthony DiClemente initiated coverage on AMC Networks, Inc.

with a Neutral rating, establishing a $70.00 price target. According to the report, “We see three themes for AMCX: 1) the company's content strategy for serialized TV lends itself well to Internet video growth; 2) the acquisition of Chellomedia helps AMCX's international growth strategy; and 3) we believe AMCX is a candidate for consolidation in media, despite having just acquired a $1bn company. However, given difficult viewership comparisons to the conclusion of Breaking Bad and a reduced slate of Mad Men, and having recently cancelled Low Winter Sun, we think AMCX—a content company at its core—simply needs a couple of new original scripted hits to replace its prior successes.” AMCX closed Tuesday at $69.54.