2024-01-11 20:10:30
Tilray management said it plans to save several million dollars by reducing general and administrative costs. (Photo: 123RF)
What to do with titles from Corus Entertainment, Tilray Brands and Stantec? Here are some analyst recommendations likely to move prices soon. Note: the author may have a completely different opinion than that expressed by the analysts.
Corus Entertainment (CJR.B, $0.75): crossing the trough
After a difficult year which saw the value of its stock slide by 67% since last February, Toronto media company Corus Entertainment will publish its financial results for the first quarter of 2024 on Friday, January 12.
RBC Capital Markets analyst Drew McReynolds says he’s ready to turn the page on a difficult year for Corus and continues to be impressed with management’s execution of multiple initiatives in their video-focused strategy.
The first quarter of 2024 will have been negatively impacted by strikes in the United States, but the RBC Capital Markets analyst believes the slide in turnover has bottomed out with the prospect of strengthening economic growth in 2024.
“After a very difficult 2023 which included both cyclical and structural challenges, we expect financial performance to gradually improve over the course of 2024 and 2025, reflecting an eventual recovery in and a normalization of television programming following the American guild strikes,” says the Royal analyst.
These last two aspects should lead to the return of positive operating leverage within Television and a deleveraging of the balance sheet according to Drew McReynolds, but he expects the stock to remain under pressure in the short term.
The analyst expects a decline in revenue of -15.0% annually, -13.2% excluding asset sales. This figure takes into account a -20.0% drop in television , according to what management has suggested.
Drew McReynolds forecasts revenue of $367 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of $111 million, down -15.4% annually while analysts’ consensus is, respectively, $373 million. $ and $108 million.
The analyst is waiting to see how much leverage begins to decline, but he expects the net debt to EBITDA ratio to be largely stable between 3.6 and 3.8, largely due to the sale of Toon Boom .
The analyst maintains his performance forecast equal to his sector as well as the target price of $1.50 for Corus shares.
Matthew Hains
Tilray Brands (TLRY: $2.69): mixed results and high expectations
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