In a latest note to investors, a research analyst has provided a rating update for the DHX Media Ltd VV (DHX). B.Riley FBR’s analyst Eric Wold downgraded DHX to Hold today , with a C$3.50 price target.
Wold said:
“With the shares of DHX Media (DHX-CA) increasing by 32% since reporting 1Q19 results on 11/13 (vs. -1.8% for the Russell 2000) and more than tripling since the mid-September lows (after the company pre-announced lower-than-expected 4Q18 results), we are downgrading with less than 5% upside to our street-high C$3.50 PT. Although we continue to believe in an attractive long-term opportunities for both the WildBrain AVOD platform and in monetizing the acquired Peanuts brand, we acknowledge that it will take additional time to realize value from the WildBrain platform (given the recent strategic review conclusion) as well as for the company to develop original content and new monetization paths for the Peanuts brand.”
According to TipRanks.com, Wold is a 3-star analyst with an average return of 2.2% and a 42.1% success rate. Wold covers the Services sector, focusing on stocks such as Reading International Inc, Cinemark Holdings Inc, and National Cinemedia.
The word on The Street in general, suggests a Hold analyst consensus rating for DHX Media Ltd VV with a C$2.38 average price target, a -28.7% downside from current levels. In a report issued on November 14, RBC Capital also maintained a Hold rating on the stock with a C$3 price target.
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Based on DHX Media Ltd VV’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of C$2.35 million. In comparison, last year the company had a net profit of C$8.15 million.
DHX Media Ltd. is engages in developing, producing, distributing, broadcasting, and exploiting the rights for television and film programming and brands. It operates through the following segments: Content Business, DHX Television, and Consumer Products Represented.
The company’s shares closed on Friday at C$3.34.
