Amc Networks Stock Fair Value Calculation – Wells Fargo & Co. Lowers Price Target for AMC Networks to $10.00
August 4, 2023
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Wells Fargo & Company recently released a report that lowered its price target for AMC ($NASDAQ:AMCX) Networks from $15.00 to $10.00. This news sent shockwaves through the financial market, as AMC Networks is a leading entertainment company that owns and operates many popular TV networks, such as BBC America, IFC, SundanceTV, and WE tv. The company is also a leader in developing innovative programming, such as critically acclaimed dramas like “Breaking Bad” and “Mad Men”. Additionally, AMC Networks owns and operates several streaming services, including Shudder and Sundance Now.
Stock Price
Despite this, the stock opened at $12.0 and closed at $12.3, up 1.5% from its previous closing price of 12.1. This indicates that investors remain bullish on the stock, regardless of the lowered price target from Wells Fargo & Co. This could be due to the strength of the company’s portfolio of media networks, which includes popular properties such as IFC and SundanceTV. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Amc Networks. More…
| Total Revenues | Net Income | Net Margin |
| 3.1k | 7.02 | 9.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Amc Networks. More…
| Operations | Investing | Financing |
| 72.87 | -36.63 | -94.41 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Amc Networks. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.46k | 4.24k | 21.22 |
Key Ratios Snapshot
Some of the financial key ratios for Amc Networks are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.0% | -6.2% | 3.4% |
| FCF Margin | ROE | ROA |
| 0.9% | 7.7% | 1.2% |
Analysis – Amc Networks Stock Fair Value Calculation
At GoodWhale, we have taken a deeper look into the financials of AMC Networks to bring our investors a comprehensive analysis. After careful consideration of all available data, we have calculated the intrinsic value of AMC Networks share to be around $37.6, using our proprietary Valuation Line. This puts the current market value of the stock at $12.3, which is significantly lower than our computed intrinsic value. This means that the current stock price is undervalued by 67.3%. We believe this presents an opportunity for investors to capitalize on the potential upside of the stock. More…
Peers
AMC Networks Inc is an American entertainment company that owns and operates several cable television channels. The company’s main competitors are Paramount Global, BuzzFeed Inc, and Tv Azteca SAB de CV.
– Paramount Global ($NASDAQ:PARA)
Paramount Global has a market cap of 10.21B as of 2022, a Return on Equity of 12.85%. The company is a diversified holding company with interests in a variety of businesses, including health care, education, and entertainment. Paramount Global is committed to creating shareholder value through the active management of its portfolio companies.
– BuzzFeed Inc ($NASDAQ:BZFD)
BuzzFeed, Inc. is an American internet media and news company based in New York City. The firm is a digital media and technology company with a focus on social media. BuzzFeed was founded in 2006 by Jonah Peretti and John S. Johnson III. The company has raised $496.3 million in venture funding to date.
– Tv Azteca SAB de CV ($OTCPK:AZTEF)
Tv Azteca SAB de CV is a Mexican multimedia company with operations in both the television and radio industries. The company’s market cap as of 2022 is 223.95M, and its Return on Equity is 91.59%. Tv Azteca is one of the largest producers of Spanish-language television programming in the world, and also owns and operates several radio stations in Mexico.
Summary
Investment analysts at Wells Fargo & Company recently lowered their price objective for AMC Networks shares from $15.00 to $10.00. The analysts state that the current market conditions for media stocks, coupled with the company’s increasing debt levels, are factors that have led to this change in their view of the stock. They recommend that investors review their risk tolerance and investment goals before making any decisions with regards to AMC Networks.
They further suggest that investing in the stocks of other media companies may prove more beneficial in the near future. The analysts also mention that any potential turnaround in AMC Networks’ stock value could be far away, and therefore caution investors against buying the stock at current levels.
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