Piper Jaffray Initates Coverage On AMC Networks

Piper Jaffray initiated coverage on AMC Networks Inc AMCX Monday with an Overweight rating and a $90 price target.

The firm’s analysts believed that AMC was “one of the best content plays in the media space in spite of challenges faced by the pay TV ecosystem.”

The firm noted that AMC had success in its scripted dramas which experienced a 38 percent jump in ratings over the past three years.

The positive ratings growth and “a rapid shift towards full ownership of its content” were seen as “a powerful catalyst for the stock,” according to the firm.

It was expected that the company would capture a greater share of viewership which would drive ad revenue growth beyond that of its peers.

Looking ahead, the growth in viewership would improve the company’s positioning in affiliate fee negotiations, according to the firm’s analysis.

AMC Networks Inc recently traded at $76.99, up 0.20 percent, and was up over 12 percent in the past 12 months.