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Corus downgraded to Underperform from Sector Perform at Scotiabank

Scotiabank downgraded Corus Entertainment (CJREF) to Underperform from Sector Perform with a price target of C$0.37, down from C$0.90. Corus on Friday announced that Warner Bros. Discovery (WBD) unexpectedly decided not to renew certain programming and trademarks output with Corus post the end of 2024, the analyst tells investors in a research note. The firm says the decision will likely deprive Corus of trademarks and programming on five channels which together accounted for close to $155M and $49M of revenues and operating income in fiscal 2022. The loss of the trademark will likely push many subscribers currently on those channels to turn to other broadcasters or streamers who will end up landing those rights, says Scotiabank

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