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

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

In a report issued Wednesday, Albert Fried & Company’s Director of Research Rich Tullo reiterated an Overweight rating and $97.00 price target on shares of AMC Networks Inc (NASDAQ: AMCX). He assures that the firm expects the company to weather TV ad challenges on the back of its “near best in class content” and the upcoming launch of "Fear The Walking Dead."

The investment thesis here is quite simple. The firm thinks AMC Network’s sizeable affiliate base and robust advertising revenue growth are alluring, but believe “near term concerns about scatter market ad rates create down side risk.”

Related Link: AMC Networks Downgraded By Topeka: Here's Why

In the long-term, however, the analysts consider the quality of the company’s programming will drive top-line growth higher. However, this will be accompanied by an increase in content expenses, given the need to invest in “new programming to replace a maturing Sunday Night serial programming schedule with few syndicate market options.”

Fear The Walking Dead

Further into the report, Tullo says Fried & Co. likes AMC’s new content slate. Fear The Walking Dead is a companion series to "The Walking Dead," scheduled for launch soon.

Investors should remember that The Walking Dead retrieved the highest TV ratings on any network -- excluding the NFL. Based on the firm’s analysis of Google trends, the experts think AMC could earn some nice ratings and expect Fear The Walking Dead to launch in a great range of 3 million to 4 million.

“We think The Walking Dead’s ratings are an aggregation of fans buying into the show (on time shifted viewing) over time and fans are now festival viewing on its Sunday time slot,” the report assures. The new series could be a big hit, but the experts caution that ratings are unlikely to match those of its predecessor this year.

Remember, The Walking Dead season 6 will premiere on October 11, at 9 pm.

Latest Ratings for AMCX

DateFirmActionFromTo
Nov 2020Morgan StanleyMaintainsEqual-Weight
Oct 2020JP MorganDowngradesNeutralUnderweight
Jul 2020Goldman SachsInitiates Coverage OnSell

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View the Latest Analyst Ratings

 

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