RE:RE:TD's Report on Corus Entertainment Yet, despite with the slight negative news that Jeff Fan from Scotia predicted, his target price of Corus Entertainment is at $10/share as of April 11, 2021.
Scotiabank analyst Jeff Fan, who rates the stock as a “sector outperformer,” argued that the time has come to reassess Corus Entertainment’s heavily discounted valuation.
“CJR has been cheap for a while. Why? We think it reflects the market’s concerns about the long-term future of Canadian TV broadcasting, in particular the disintermediation by streaming services, the loss of future content supply (or more costly) and the continued regulatory burden.” he said in a note.
“We think it is time for the market to reassess because we see more tangible progress on initiatives that address the above secular issues, plus the last COVID-19 difficult y/y comparison quarter is now behind us. We believe the tangible progress includes: 1) StackTV, 2) higher content sales outside Canada for higher-margin revenue and better future content supply for the advertising video on demand opportunity, and 3) Bill C-10 (the amendment to the Broadcasting Act),” he said.
while TD analyst Vince Valentini recommends Corus Enrertainment's target price to be $9/ share as of April 11, 2021.