B. Riley expects the Starz rally to hit overdrive

[Starz headquarters on Stewart St in Santa Monica, California, USA]

Starz Entertainment Corp. (STRZ [https://seekingalpha.com/symbol/STRZ]) is on watch after B. Riley Securities called it a rising star in the media sector. The firm started off coverage on Starz (STRZ [https://seekingalpha.com/symbol/STRZ]) with a Buy rating on its view that the resounding support of its separation from Lionsgate (LION [https://seekingalpha.com/symbol/LION]) will continue.

Analyst Drew Crum and his team noted that they share the enthusiasm and see a path to a stronger financial framework over the next few years that is not fully reflected in the current valuation.

"The company operates a profitable premium streaming service where market dynamics and competitive positioning underpin our over-the-top (OTT) revenue forecast (2025A--2029E CAGR = 4%+; 80% of total). We are also constructive on Starz's new programming strategy, with plans to increase production and ownership of original content, which, in addition to a solid pipeline of blockbuster films (e.g., Michael), appeals to an engaged cohort, namely women and underrepresented audiences," wrote Crum.

Looking ahead, higher cash flow generation is expected to allow the company to accelerate debt reduction. The firm's price target of $45 implies a +70% return potential from the June 25 close.

Shares of STRZ were up 0.1% in premarket trading to $28.94. The stock has more than doubled in 2026.

MORE ON STARZ ENTERTAINMENT CORP.

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