Analyst Explains Why They Upgraded Their Rating on DHX Media Ltd VV (DHX)
Today, an analyst has provided a rating update for the Services sector company, DHX Media Ltd VV (DHX). B.Riley FBR’s analyst Eric Wold upgraded DHX to Buy , with a C$4 price target.
“We are upgrading DHX Media (DHX-CA) to Buy and raising our PT from C$3.50 to C$4.00. Since downgrading to 19.5% decline in the shares (vs. a gain of 3.5% for the S&P 500) has created a more attractive entry point. More importantly, following the mid-December content deal with Apple (AAPL) and additional WildBrain content management agreements, we are increasingly optimistic for improving adjusted EBITDA heading into FY20 and believe that consensus estimates are too conservative due to the company’s past history with meeting guidance and lack of any guidance provided for this year.”
According to TipRanks.com, Wold is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -3.0% and a 38.4% success rate. Wold covers the Services sector, focusing on stocks such as Reading International Inc, Cinemark Holdings Inc, and National Cinemedia.
Currently, the analyst consensus on DHX Media Ltd VV is a Hold with an average price target of C$2.68.
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$7.41 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 Monday at C$2.69.