Seaport Research Initiates Coverage of Starz Entertainment (STRZ), Sees Potential for Higher Valuation

On Monday, Seaport Research initiated coverage of Starz Entertainment Corp. (NASDAQ:STRZ) with a Buy rating and a price target of $30. Seaport Research analyst David Joyce believes that the company has a clear path to support its target demographic with original content. This should then lead to increased average revenue per user over time, as well as EBITDA growth, margin expansion, free cash flow conversion, and debt reduction.

Seaport Research also suggests that the longer-term valuation for Starz Entertainment Corp. (NASDAQ:STRZ) could be significantly higher and potentially reach $46 and even $56 per share. However, this depends on improved sentiment within the sector and a clearer differentiation among various business models.

Starz Entertainment provides subscription video programming to consumers in the US and Canada. Its business consists of the distribution of STARZ-branded premium subscription video services through over-the-top platforms and distributors on a DTC basis through the STARZ-branded app and through multichannel video programming distributors.

While we acknowledge the potential of STRZ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than STRZ and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.