CIBC analyst Scott Fletcher last night downgraded Corus Entertainment to Underperformer from Neutral with a price target of C$0.25, down from C$0.85. The company on Friday announced that content partner Warner Brothers Discovery had informed Corus that some of its programming and trademark output arrangements will not be renewed after they expire on December 31, 2024. WBD is a significant partner for Corus, with its content included on a number of key Corus specialty channels, the analyst tells investors in a research note. The firm believes the loss of the programming and trademarks on five WBD channels could result in as much as $150M in lost annual revenue and $40MMin lost EBITDA, representing 12% and 14%, respectively, of its prior 2025 estimates. CIBC now sees uncertainty around Corus’ ability to refinance debt maturing in 2027.
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