Alliance Global Partners analyst Brian Kinstlinger lowered the firm’s price target on Chicken Soup for the Soul to $12 from $18 and keeps a Buy rating on the shares. With almost $480M of debt and adjusted EBITDA not yet converting to cash flow, improving cash conversion is the most critical metric going forward for the company, the analyst tells investors in a research note. As theatrical releases picked up in mid-February and with a major release almost every weekend for the remainder of 2023, Chicken Soup’s revenue and adjusted EBITDA will pick up beginning in Q2, contends the firm. It cites the company’s the recent dilution, additional dilution ahead and a lower target valuation multiple for the target drop.
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Published first on TheFly
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