'Fear The Walking Dead' Hype Is Building, AMC Investors

In a report published Thursday, Piper Jaffray analyst Stan Meyers maintained an Overweight rating on AMC Networks Inc AMCX, with a $90 price target.

AMC Networks' shares suffered in the Q2 earnings broader media sell-off. Meyers said, however, that the stock still represented "an undervalued high growth content play."

"We expect the company to grab substantially greater share of viewership, driving its ad revenue growth ahead of its peers and improving its positioning in the affiliate fees negotiations," Meyers added. Although the company had significant exposure to domestic pay-TV bundle, the continued decline in subs was expected to be offset by growth in affiliate fee revenue per sub.

Related Link: 'Fear The Walking Dead' Could Give AMC Stock Even More Upside

In the report Piper Jaffray noted, "[W]e believe AMC's success in scripted dramas (rating up 38% over the past 3 years), combined with a rapid shift towards full ownership of its content translates into a powerful catalyst for the stock."

The 15 percent sell-off in AMC Networks' shares offered a good entry point, especially since there was a major catalyst for the stock ahead - the premiere of "Fear The Walking Dead." "We estimate the drama to average roughly 5M viewers per episode and to deliver $55M in ad revenue. We also see upside to our 2016 estimates where FTWD expands from 6 episodes to 15," Meyers wrote.

AMC Networks' international revenues are set to grow, given the company's new distribution deals, affiliate fee re-negotiations and improving advertising demand around originals.