This AMC Networks Analyst Is No Longer Bullish Amid Netflix-Paramount Battle For Warner Bros Discovery

AMC Networks Inc's (NASDAQ:AMCX) shares have rallied driven by the battle between Netflix Inc (NASDAQ:NFLX) and Paramount Skydance Corp (NASDAQ:PSKY) to acquire Warner Bros Discovery Inc (NASDAQ:WBD), despite the linear networks industry facing declining subscriber, revenue and EBITDA trends, according to Seaport Research Partners.

The AMC Networks Rating: Analyst David Joyce downgraded the rating from Buy to Neutral.

The AMC Networks Thesis: The company's consolidated revenue is likely to contract 5.4% in 2025 to $2.29 billion, steeper than the 5% guidance, Joyce said in the downgrade note.

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"Streaming Subscription revenue is the substantial growth driver, +12.8% y/y and now representing 30% of total revenue, which bodes well for continued FCF generation and equity value," which makes AMC Networks an attractive target for a potential industry consolidation, the analyst wrote.

The stock is fairly valued for now, unless some consolidation event emerges, he added. Joyce further stated that it is better to wait on the sidelines until the dust related to the Warner Bros. Discovery purchase settles.

AMCX Price Action: Shares of AMC Networks had declined by 2.30% to $9.78 at the time of publication on Monday.

Read More:

• AMC Networks Profit Plummets 80%, CEO Says Streaming Is Now ‘Largest Revenue Source’

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