B. Riley Securities Sees Bright Future for Starz Entertainment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: seekingalpha
- Rating Initiation: B. Riley Securities initiates coverage on Starz Entertainment (STRZ) with a Buy rating, believing that the strong support for its separation from Lionsgate will lead to a stronger financial framework in the coming years.
- Profitability Potential: Analyst Drew Crum notes that Starz's profitable streaming service is supported by market dynamics and competitive positioning, with an expected CAGR of over 4% for OTT revenue from 2025 to 2029, accounting for 80% of total revenue.
- Content Strategy: Starz plans to increase production and ownership of original content, alongside a solid pipeline of blockbuster films (e.g., Michael), appealing to engaged audiences such as women and underrepresented groups, thereby enhancing its market appeal.
- Debt Reduction: Higher cash flow generation is expected to allow the company to accelerate debt reduction, with B. Riley's price target of $45 implying over 70% potential return from the June 25 close of $28.94.
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Analyst Views on STRZ
Wall Street analysts forecast STRZ stock price to fall
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 30.100
Low
13.00
Averages
20.00
High
39.00
Current: 30.100
Low
13.00
Averages
20.00
High
39.00
About STRZ
Starz Entertainment Corp. is the premium entertainment destination for women and underrepresented audiences, and home to some of the popular franchises and series on television. The Company offers a programming mix for discerning adult audiences, including originals and an expansive lineup of movies, and is embodied by its brand positioning We're All Adults Here. Complementary to any platform or service, it is available across a range of digital over-the-top (OTT) platforms and multichannel video distributors and is a bundling partner of choice. The Company operates primarily in the United States and Canada and distributes the STARZ branded premium subscription video services on a direct-to-consumer OTT basis through the Starz App and through wholesale OTT and multichannel video programming distributors (MVPDs), including cable operators, satellite television providers and telecommunications companies (in the aggregate the Starz Platform).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
STARZ to Report Q2 2026 Financial Results on August 7
- Earnings Release Schedule: STARZ announced it will report its Q2 2026 financial results on August 7, reflecting the company's commitment to transparency and investor communication, which is expected to influence market expectations regarding its future performance.
- Analyst Call: Senior management will hold an analyst and investor call at 5:00 AM PT/8:00 AM ET on the earnings release day to discuss the financial results in depth, aiming to bolster investor confidence and provide insights into future strategic directions.
- Brand Positioning: STARZ aims to be the leading entertainment destination for women and underrepresented audiences, offering a diverse mix of original programming and blockbuster films, highlighting its unique positioning and market strategy in the competitive streaming landscape.
- Technological Infrastructure: STARZ leverages advanced technology, data analytics, and digital infrastructure to ensure efficient platform operations and user experience, further solidifying its competitive edge in the OTT market.
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STARZ to Report Q2 2026 Financial Results on August 7
- Earnings Release Schedule: STARZ announced it will report its Q2 2026 financial results on August 7, reflecting the company's commitment to transparency and investor communication.
- Analyst Call: Senior management will hold an analyst and investor call on the morning of the earnings release at 5:00 AM PT/8:00 AM ET, aimed at discussing financial results in depth and boosting investor confidence.
- Live Audio Webcast: Investors can listen to the live audio webcast by clicking the provided link, ensuring timely information dissemination and enhancing engagement.
- Focus on Female Audiences: As a leading premium entertainment destination for women and underrepresented audiences, STARZ is dedicated to offering diverse programming, highlighting its unique market positioning and strategic direction.
See More
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- Strategic Planning: This feasibility review will provide 707 Cayman with critical data to assess the potential benefits and risks of the new project, allowing for a more precise market entry strategy that strengthens its position in the industry.
- Resource Allocation: By initiating this review, 707 Cayman can more effectively allocate resources to ensure optimal returns on investment in future technology development, further promoting the company's sustainable growth.
- Market Outlook: The feasibility review of this project will not only impact 707 Cayman’s short-term decisions but may also provide strategic guidance for future product line expansions and market penetration, supporting its long-term growth.
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- Rating Initiation: B. Riley Securities initiates coverage on Starz Entertainment (STRZ) with a Buy rating, believing that the strong support for its separation from Lionsgate will lead to a stronger financial framework in the coming years.
- Profitability Potential: Analyst Drew Crum notes that Starz's profitable streaming service is supported by market dynamics and competitive positioning, with an expected CAGR of over 4% for OTT revenue from 2025 to 2029, accounting for 80% of total revenue.
- Content Strategy: Starz plans to increase production and ownership of original content, alongside a solid pipeline of blockbuster films (e.g., Michael), appealing to engaged audiences such as women and underrepresented groups, thereby enhancing its market appeal.
- Debt Reduction: Higher cash flow generation is expected to allow the company to accelerate debt reduction, with B. Riley's price target of $45 implying over 70% potential return from the June 25 close of $28.94.
See More
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- Acquisition Intentions Foiled: Despite Netflix's attempt to acquire Warner Bros. Discovery in 2025 to enhance its content library, it was ultimately outbid by Paramount Skydance Corporation, highlighting its competitive disadvantages.
- Intensifying Market Competition: With competitors like Disney and Amazon building strong content libraries through acquisitions, Netflix faces increasing market pressure, necessitating new acquisition opportunities to maintain its competitive edge.
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STARZ to Report Q2 2026 Financial Results on August 7
- Earnings Release Schedule: STARZ announced it will report its Q2 2026 financial results on August 7, reflecting the company's commitment to transparency and investor communication, which is expected to influence market expectations regarding its future performance.
- Analyst Call: Senior management will hold an analyst and investor call at 5:00 AM PT/8:00 AM ET on the earnings release day to discuss the financial results in depth, aiming to bolster investor confidence and provide insights into future strategic directions.
- Brand Positioning: STARZ aims to be the leading entertainment destination for women and underrepresented audiences, offering a diverse mix of original programming and blockbuster films, highlighting its unique positioning and market strategy in the competitive streaming landscape.
- Technological Infrastructure: STARZ leverages advanced technology, data analytics, and digital infrastructure to ensure efficient platform operations and user experience, further solidifying its competitive edge in the OTT market.
See More
STARZ to Report Q2 2026 Financial Results on August 7
- Earnings Release Schedule: STARZ announced it will report its Q2 2026 financial results on August 7, reflecting the company's commitment to transparency and investor communication.
- Analyst Call: Senior management will hold an analyst and investor call on the morning of the earnings release at 5:00 AM PT/8:00 AM ET, aimed at discussing financial results in depth and boosting investor confidence.
- Live Audio Webcast: Investors can listen to the live audio webcast by clicking the provided link, ensuring timely information dissemination and enhancing engagement.
- Focus on Female Audiences: As a leading premium entertainment destination for women and underrepresented audiences, STARZ is dedicated to offering diverse programming, highlighting its unique market positioning and strategic direction.
See More
707 Cayman Initiates Feasibility Review for Next-Gen Project
- Board Decision: On Wednesday, 707 Cayman’s board approved a feasibility review for a next-generation project, marking a significant step in the company's commitment to technological innovation and product upgrades aimed at enhancing market competitiveness.
- Strategic Planning: This feasibility review will provide 707 Cayman with critical data to assess the potential benefits and risks of the new project, allowing for a more precise market entry strategy that strengthens its position in the industry.
- Resource Allocation: By initiating this review, 707 Cayman can more effectively allocate resources to ensure optimal returns on investment in future technology development, further promoting the company's sustainable growth.
- Market Outlook: The feasibility review of this project will not only impact 707 Cayman’s short-term decisions but may also provide strategic guidance for future product line expansions and market penetration, supporting its long-term growth.
See More
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- Rating Initiation: B. Riley Securities initiates coverage on Starz Entertainment (STRZ) with a Buy rating, believing that the strong support for its separation from Lionsgate will lead to a stronger financial framework in the coming years.
- Profitability Potential: Analyst Drew Crum notes that Starz's profitable streaming service is supported by market dynamics and competitive positioning, with an expected CAGR of over 4% for OTT revenue from 2025 to 2029, accounting for 80% of total revenue.
- Content Strategy: Starz plans to increase production and ownership of original content, alongside a solid pipeline of blockbuster films (e.g., Michael), appealing to engaged audiences such as women and underrepresented groups, thereby enhancing its market appeal.
- Debt Reduction: Higher cash flow generation is expected to allow the company to accelerate debt reduction, with B. Riley's price target of $45 implying over 70% potential return from the June 25 close of $28.94.
See More
Latest Wall Street Rating Updates
- Abbott Labs Upgrade: Baird initiates coverage on Abbott Labs (ABT) with an outperform rating, projecting steady revenue and earnings growth of 6-8% over the next few years, bolstered by its leading position in the rapidly growing MedDevice market, enhancing the company's competitive edge.
- Murphy USA Upgrade: Jefferies upgrades Murphy USA (MUSA) from hold to buy, citing improving fuel margins that are expected to drive EBITDA outlook significantly higher by 20-25%, which will materially enhance the company's financial performance in the coming years.
- Abivax Upgrade: Jefferies raises Abivax (ABVX) to buy, noting strong data for its ulcerative colitis drug that alleviates key market concerns, which is likely to drive a rebound in the stock price.
- Talos Energy Upgrade: Roth upgrades Talos Energy (TALO) from neutral to buy, raising the price target by 6% to $17, based on its robust balance sheet and low production decline rates, indicating strong future growth potential.
See More
Netflix's Acquisition Failures Lead to Stock Decline
- Stock Decline: Netflix's shares have dropped 17.5% year-to-date, reflecting market concerns over its acquisition strategy, particularly after failing to secure Warner Bros. Discovery and Roku, which has undermined investor confidence.
- Acquisition Intentions Foiled: Despite Netflix's attempt to acquire Warner Bros. Discovery in 2025 to enhance its content library, it was ultimately outbid by Paramount Skydance Corporation, highlighting its competitive disadvantages.
- Intensifying Market Competition: With competitors like Disney and Amazon building strong content libraries through acquisitions, Netflix faces increasing market pressure, necessitating new acquisition opportunities to maintain its competitive edge.
- Business Model Shift: Although Netflix's original content viewership has increased and revenue has grown by 47% over the past three years, the decline in content diversity may impact future user growth, raising concerns in the market.
See More
