![]() However, there’s ample cash flow to keep the stock afloat and interesting.” “Pricing and packaging drive value but once lofty pricing assumptions are challenged by intensifying competition. “It must be complemented with underlying fundamentals to drive cash flow growth,” again mentioning WBD and Paramount as companies whose stock will be impacted.įinally, cable subscriber growth as a narrative “is over,” Yoon highlighted about Comcast and Charter. Third, de-levering alone is “insufficient,” the expert said. Discovery (WBD) and Paramount as stocks affected by this. Second, Yoon argued that the “industry structure is unsustainable, and consolidation overhang will persist.” While there are likely interested buyers and sellers, “interest rates and depressed valuations make deals more challenging near-term - but never say never,” he offered, mentioning Warner Bros. “Future growth and profitability are about outpacing linear decline with direct-to-consumer (DTC) growth and having scale for profitability.” That plays into Bernstein’s rating on Disney and Paramount. First, the decline of linear TV and the transition to streaming are “well-established narratives,” the Bernstein analyst noted. He then explained four core investment themes that shape his team’s perspective on key stocks. “(The) linear monetization model is in a free fall, and media companies can’t raise affiliate fees fast enough to offset subscriber decline. “SVOD, initially a cheap complement to pay TV, became (a) cheap and compelling alternative and drove cord cutting which continues without an end in sight,” he wrote. Yoon outlined key sector themes affecting stocks. ($32), Comcast ($46), and Charter Communications ($463).īBC Says Reporter Was "Wrong" to Blame Israel for Gaza Hospital Rocket Misfire The expert put “market-perform” ratings on four other stocks, namely Netflix (with a stock price target of $375), Fox Corp. Discovery with “outperform” ratings and $103 and $13 stock price targets, respectively, but put an “underperform” on Paramount Global with an $11 price target. ![]() 5, notably weighing in on the stock price targets for major Hollywood studio conglomerates.īernstein analyst Laurent Yoon kicked off Walt Disney and Warner Bros. ![]() ![]() Bernstein, re-initiated coverage of seven media and telecom stocks on Oct. A notable Wall Street private securities and investment research firm, Sanford C. ![]()
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