Seaport Global Securities has initiated coverage on Starz Entertainment (NASDAQ:STRZ) with a Buy rating and a $30 price target, citing significant upside potential driven by free cash flow strength, margin expansion, and a compelling valuation disconnect.
Analysts noted that post-split market dislocation has left Starz trading at a steep discount—even relative to traditional linear networks that are more exposed to cord-cutting. With strong free cash flow conversion, the firm sees a clear path to debt reduction and EBITDA growth as Starz deepens its connection with its core subscriber base through targeted original content.
The firm believes this focus supports eventual ARPU gains, improved profitability, and stronger cash generation. While the near-term target is $30, Seaport estimates that longer-term valuation could rise to $46 or even $56 as investor sentiment improves and the market begins to differentiate between content-driven platforms and legacy media models.
The upcoming earnings report, expected after the close on May 29, could be a key catalyst for reassessing the company’s trajectory.
