CuriosityStream, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Laura Martin from Needham maintained a Buy rating on the stock and has a $6.00 price target.
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Laura Martin has given her Buy rating due to a combination of factors, including the strong performance of CuriosityStream’s large language model (LLM) license fees, which have surpassed previous expectations. This growth is supported by the CEO’s new employment contract, which incentivizes revenue growth exceeding 40% year-over-year. Additionally, the company has successfully signed 16 LLM deals and is in discussions with approximately 50 more, indicating potential for further revenue increases.
However, it is important to note that the revenue from these LLM deals is recognized in the quarter when content is delivered, leading to non-recurring revenue streams. This could result in more volatile revenue growth compared to the past. Despite this volatility, the introduction of fiscal year 2027 estimates and the adjustment of the discounted cash flow valuation have contributed to an increased 12-month price target, supporting the Buy rating.
In another report released yesterday, Barrington also maintained a Buy rating on the stock with a $6.00 price target.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CURI in relation to earlier this year.