Maintained at Market Perform at BMO; Target Kept at C$1.75Corus Entertainment Maintained at Market Perform at BMO Following Fiscal Q3 Results; Price Target Kept at C$1.75 2023-06-30 11:33:40 AM ET (MT Newswires)
11:33 AM EDT, 06/30/2023 (MT Newswires) -- BMO Capital Markets on Friday reiterated its market-perform rating on the shares of Corus Entertainment (CJR-B.TO) and its C$1.75 price target after the broadcaster reported fiscal third-quarter results.
"Q3 revenue and EBITDA decreased -8% and -22%, respectively, and the company incurred a $590mm impairment charge affecting television assets. EBITDA was a slight beat to consensus on lower corporate costs. Excluding the charge, Adj. EPS was $0.09 vs. $0.05 Street. Consolidated margins compressed to 24% from 29%. Television advertising revenues declined -12%. We expect advertising softness to continue. There is limited visibility in the outlook given the writer's strike in Hollywood. Debt reduction remains a priority (currently 3.9x LTM)," analyst Tim Casey wrote.