National Bank Maintains Sector Perform Rating; Target C$2.75National Bank Maintains Rating on Corus Amid Enterprise-Wide Cost Review 2023-03-07 11:18:04 AM ET (MT Newswires)
11:18 AM EST, 03/07/2023 (MT Newswires) -- National Bank said Monday that it has maintained its sector perform rating with a price target of $2.75 on Corus Entertainment Inc. (CJR-A.TO, CJR-B.TO) even as an enterprise-wide cost review is underway.
"With ad sales under pressure and uncertainty prevailing regarding the potential timing and extent of a recession, Corus is looking across its organization to extract savings and gain efficiencies," the analysts said.
National Bank has also adopted a revised payment schedule with expected quarterly payment dates shifting to August, November, February, and May from June, September, December, and March.
Corus has sought adjustments to the financial covenants in its credit facility.
"We currently don't see the company breaching even its prior covenants, but the added cushion is warranted for added prudence given evolving top-line pressures. Corus will report its Q2 on April 13," the analysts added.
The company's shares were down 2.1% on last look on Tuesday.