Wall Street has high expectations for AMC Networks as it prepares to begin its new life Friday as an independent, publicly traded company. Most, and possibly all, of the analysts following the owner of AMC, IFC, WeTV and Sundance have a “buy” rating on the stock, which Cablevision Systems is spinning off and will trade on NASDAQ under the symbol “AMCX.”
The company’s going public as its biggest channel, AMC, enjoys a hot streak. Mad Men is bidding to become the first series since NBC’s The West Wing to win the Emmy for Best Drama Series for four straight years. If The Walking Dead and The Killing also are nominated, then AMC could become the first cable network to have three candidates in that category. Another AMC hit, Breaking Bad, isn’t eligible this year.
Maxim Group’s John Tinker says that AMC has “done an exceptional” job of commissioning original series as he projects that AMCX will hit $34 in 12 months. He’s concerned, though, that AMC won’t enjoy most of the financial rewards from its hits. For example, Mad Men producer Lionsgate owns the show’s syndication rights. Tinker also fears that AMC’s collection of older movies compete too directly with Netflix. Cable cord cutting “is here to stay,” he says. (more…)