Morgan Stanley Sees Mixed Factors Ahead for AMC Networks

In a report published Friday, Morgan Stanley analyst Ryan Fiftal reiterated an Equal-Weight rating and $78.00 price target on

. In the report, Morgan Stanley noted, “With the tail risk of being dropped by multiple major distributors behind it and the Voom litigation settled, AMCX has overcome significant sources of idiosyncratic risk. We expect ad growth to outpace cable peers in the near-term as the company monetizes recent ratings performance (particularly from The Walking Dead). New content (replacing Breaking Bad and eventually Mad Men) could drive upside potential. However, given Walking Dead's record ratings, risk for that series likely skews to the downside. Furthermore, we have longer-term concerns across the cable networks on programming cost pressure as amortization catches up to cash spend over time.” AMC Networks closed on Thursday at $75.31.