Maxim Group Starts Starz (STRZA) at Buy
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Price: $35.52 --0%
Rating Summary:
5 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
5 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Maxim Group initiates coverage on Starz (NASDAQ: STRZA) with a Buy. PT $21.00.
Analyst John Tinker comments, "Liberty Media (NASDAQ: LMCA) (Buy, $149 PT) is spinning itself out in order to leave Starz as a standalone entity. Starz could be underpriced, in our opinion, as many investors may not be interested in a low-growth asset competing in a Netflix (NFLX) type of world. With this spinout, Liberty is positioning Starz in order to sell it.
Tinker said the negatives are well known: Disney in deal with Netflix starting in 2016; Comcast Universal re-signed with Time Warner's HBO; News Corp's Fox reupped with HBO last year; CBS's Showtime has the hot product with Homeland; and Starz needs to produce a hit other than Spartacus. On the positive side, Starz has 17 channels with 55M subscribers and generates $443M EBITDA (FY12E). It has long-term cable carriage contracts, has theatrical pay TV rights from Disney until 2016 and Sony Columbia until 2017, and it has a solid management team with CEO Chris Albrecht at the helm, as well as some successful original shows (such as Magic City).
For an analyst ratings summary and ratings history on Starz click here. For more ratings news on Starz click here.
Shares of Starz closed at $ yesterday, with a 52 week range of $-$.
Analyst John Tinker comments, "Liberty Media (NASDAQ: LMCA) (Buy, $149 PT) is spinning itself out in order to leave Starz as a standalone entity. Starz could be underpriced, in our opinion, as many investors may not be interested in a low-growth asset competing in a Netflix (NFLX) type of world. With this spinout, Liberty is positioning Starz in order to sell it.
Tinker said the negatives are well known: Disney in deal with Netflix starting in 2016; Comcast Universal re-signed with Time Warner's HBO; News Corp's Fox reupped with HBO last year; CBS's Showtime has the hot product with Homeland; and Starz needs to produce a hit other than Spartacus. On the positive side, Starz has 17 channels with 55M subscribers and generates $443M EBITDA (FY12E). It has long-term cable carriage contracts, has theatrical pay TV rights from Disney until 2016 and Sony Columbia until 2017, and it has a solid management team with CEO Chris Albrecht at the helm, as well as some successful original shows (such as Magic City).
For an analyst ratings summary and ratings history on Starz click here. For more ratings news on Starz click here.
Shares of Starz closed at $ yesterday, with a 52 week range of $-$.
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