Chicken Soup for the Soul price target lowered to $8 from $14 at Craig-Hallum

Craig-Hallum analyst Jason Kreyer lowered the firm’s price target on Chicken Soup for the Soul to $8 from $14 due to multiple compression in the industry, while keeping a Buy rating on the shares. The firm notes Chicken Soup for the Soul has created an attractive network of streaming assets that continue to post strong growth figures, bucking industry trends that are seeing pressure on ad-supported models. Craig-Hallum views these assets as meaningfully undervalued, yet we understand the confusion around Redbox, which is driving an upcoming fundamental inflection, but has also created a heavy load of debt on the balance sheet. At the end of the day, the firm believes the resurgence of Redbox should bankroll an even wider network of streaming assets, which operates profitably, making it a unique asset at this stage in the evolution of streaming.