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AMC Networks: Hold Rating Amid Revenue Decline and Uncertain Digital Growth

AMC Networks: Hold Rating Amid Revenue Decline and Uncertain Digital Growth

AMC Networks (AMCXResearch Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Doug Creutz from TD Cowen reiterated a Hold rating on the stock and has a $6.00 price target.

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Doug Creutz’s rating is based on several factors, including AMC Networks’ recent financial performance and future projections. The company reported Q4:24 revenue that slightly missed both the firm’s and consensus estimates, with its guidance for FY25 also falling short of previous expectations. Consequently, Creutz adjusted the price target to $6, reflecting a more conservative valuation approach.
Although AMC Networks is expected to reach a critical point in 2025, there are significant concerns about whether this will be sufficient to improve its financial standing. The FY25 guidance suggests a continued decline in earnings, with total revenue expected to decrease and domestic ad revenue projected to drop by 10% year-over-year. While streaming and digital revenues are anticipated to grow, they may not compensate for the declines in linear broadcasting. Therefore, Creutz has chosen a Hold rating, as it remains uncertain if digital growth can support the company’s investment and justify a more optimistic outlook.

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