Chicken Soup For The Soul Gets 52% Price Target Cut Post Modestly Disappointing 4Q Results
Chicken Soup For The Soul Gets 52% Price Target Cut Post Modestly Disappointing 4Q Results
雞湯為靈魂得到 52％ 的價格目標切後溫和令人失望的 4Q 結果
- Benchmark analyst Daniel Kurnos maintains Chicken Soup For The Soul Entertainment, Inc (NASDAQ:CSSE) with a Buy and lowers the price target from $25 to $12.
- The re-rating reflects the company's modestly disappointing 4Q results.
- The revenue result was technically in line on a consolidated basis, although there was no official breakout between legacy CSSE and Redbox. Commentary from management, however, suggested a 29% Y/Y increase in Crackle from a combination of expanded distribution touchpoints (now 160 FAST channels), along with the development of their 3P ad sales solution as a provider of direct access and scale for outside parties who cannot reach that marketplace themselves.
- Kurnos suspects legacy CSSE modestly outperformed, with Redbox the underperformer on lower kiosk count and a slower reacceleration of the rental business. It is, consequently, surprising that adjusted EBITDA was below the analyst's and the street forecast by some $3 million, but it is entirely possible to attribute that to transitional noise.
- The more important news, however, was the $11 million raise that produced a more strained call on Friday morning and led to a 40% decline in the share price.
- The guidance for 1Q is slightly ahead of expectations, implying a cash burn in the mid-single digit range and a much better investor forecast.
- However, adjusted EBITDA is also now benefiting from increased stock comp instead of cash to help alleviate the cash burn pressure, technically implying a reduced guidance range given that the prior range was unchanged.
- The increase in movie titles alone should be a tailwind for Redbox, even in an uncertain macro environment. The recent raise suggests an immediate need for capital (there was a cash put). However, Chicken Soup has a highly restricted $50 million ATM open to them while they push for a loan against receivables and still have $18 million on the balance sheet.
- Kurnos suspect another $50 million or more in potential asset sales could further help de-lever the balance sheet.
- The analyst believes the bar is extremely low, and shares would trade materially higher if not for the debt concerns.
- Therefore the price target reflects that CEO Bill Rouhana has a better than 50/50 chance to pull this off.
- Price Action: CSSE shares traded lower by 7.75% at $1.8450 on the last check Monday.
- 基準 分析師丹尼爾庫諾斯維持 雞湯為靈魂娛樂公司 (納斯達克:CSSE) 與買入和降低目標價格從 25 美元至 12 美元.
- 重新評級反映了該公司的謙虛令人失望的 4Q 結果。
- 儘管傳統 CSSE 和 Redbox 之間沒有正式突破，但收入結果在技術上是一致的，但在綜合基礎上是一致的。然而，管理層的評論建議，從擴展的分發接觸點（現在是 160 FAST 渠道）的組合中，Crackle 的 Y/Y 增加了 29％，以及開發他們的 3P 廣告銷售解決方案，作為直接訪問和擴展規模的供應商，無法進入該市場的外部人員。
- 庫爾諾斯懷疑遺留 CSSE 謙虛地表現優於, 與 Redbox 在較低的亭數和租賃業務的重新加速較慢的表現不佳.這是, 因此, 令人驚訝的是，調整後 EBITDA 低於分析師的和街道預測 $300 萬, 但它是完全有可能歸因於過渡噪聲.
- 然而，更重要的消息是 11 萬美元的加薪，在星期五早上引起了更緊張的電話，並導致了 40％ 的股價下跌。
- 1Q 的指導略高於預期，這意味著中間個位數範圍內的現金燃燒和更好的投資者預測。
- 然而，調整後 EBITDA 現在也受益於股票比較增加，而不是現金，以幫助減輕現金燒毀壓力，從技術上暗示鑑於之前的範圍沒有變化，指導範圍縮小。
- 即使在不確定的宏環境中，僅電影標題的增加應該是 Redbox 的順風。最近的加薪表明立即需要資本（有現金認沽）。但是，雞湯對他們開放了高度限制的 5000 萬美元 ATM，同時他們推動應收帳款的貸款，並且在資產負債表上仍然擁有 18 萬美元。
- Kurnos 懷疑另一個 5000 萬美元或更多潛在的資產銷售可能會進一步幫助降低資產負債表的槓桿。
- 該分析師認為，該標準非常低，如果不是出於債務擔憂，股票的交易將大幅上漲。
- 因此，價格目標反映了首席執行官比爾·魯哈納（Bill Rouhana）的機會要好於 50/50。
- 價格行動： 上次檢查週一，中證交所股價下跌 7.75%，為 1.8450 美元。
譯文內容由第三人軟體翻譯。
以上內容僅用作資訊或教育之目的，不構成與富途相關的任何投資建議。富途竭力但無法保證上述全部內容的真實性、準確性和原創性。