Analysts have raised their fair value estimate for AMC Global Media from US$8.67 to US$9.83 per share following the company's US$500 million, five-year Netflix licensing deal for The Walking Dead Universe. Morgan Stanley and Wells Fargo both tied higher price targets to the agreement, with Wells Fargo citing added cash and better balance sheet visibility in its revised US$11 target. Morgan Stanley lifted its target to US$10 but kept an Underweight rating, while UBS also raised its target to US$10 and maintained a Sell rating, noting broader industry headwinds. The updated model assumes a steeper revenue decline of 2.90% versus 2.34% previously, a lower net profit margin of 0.84% versus 1.97%, and a higher future P/E ratio of 28.41x versus 10.45x.
AMC Global Media Inc.Fair value raised to $9.83 after Netflix licensing deal, with price target increases from multiple analysts.
Netflix IncNetflix's $500 million licensing deal for The Walking Dead Universe adds content to its platform.
