Starz Entertainment initiated with a Buy at Seaport Research

Seaport Research analyst David Joyce initiated coverage of Starz Entertainment (STRZ) with a Buy rating and $30 price target The company has a “clear path” toward supporting its target demographic subscribers with original content that should support average revenue per user increases in time, EBITDA growth and margin expansion, free cash flow conversion, and debt paydown, the analyst tells investors in a research note. Seaport believes the longer-term valuations for Starz could be “much higher,” up to $46 and conceivably even $56 per share, once sentiment in the sector improves and differentiates among business models.