This Analyst Picks 6 Bullish, 2 Bearish Stocks In The Entertainment Sector: What Are They And What Investors Should Know

Wondering which internet and media stocks to invest in and the ones to stay away from? Here’s what Rosenblatt Securities analyst Barton Crockett recommends for buying and selling.

Charter Communications

Analyst Barton Crockett initiated coverage of Charter Communications Inc CHTR with a Buy rating and a price target of $732.

“Charter and peers' transition to 1G upstream / multi-gig downstream DOCSIS 3.1 with a glide path to 10G up/down DOCSIS 4.0 makes their service fully competitive with fiber, the best technical challenger. I expect broadband growth to continue, as this is the most important service of the modern era, and the hefty share repurchase that has been Charter's hallmark to be more impactful,” the analyst wrote.

Walt Disney

Crockett launched coverage of Walt Disney Co DIS with a Buy rating and a price target of $177.

“Disney's theme parks, and those of peers, are in what may be the strongest demand environment ever, judging by record pricing leverage, and big crowds. More catalysts can come as international travel resumes and Disney's cruise ships resume sailing. In DTC streaming, I'm skeptical about the sector, but see Disney as relatively well-positioned as an early mover with scaled leadership, global footprint and distinct brand,” the analyst said.

Alphabet (parent company of Google)

The Rosenblatt Securities analyst started coverage of Alphabet, Inc GOOGL with a Buy rating and a price target of $4,183.

“By virtue of advantaged positioning for new ad privacy restrictions, leadership in viral video and emerging success in cloud services, no company is better positioned to leverage what is working online right now, and avoid what isn't,” Crockett stated.

Roku

The analyst initiated coverage of Roku Inc ROKU with a Buy rating and a price target of $188.

Crockett said in the note, “Roku's shares are down 70% in the past year, versus a 7% rise in the S&P 500, hammered by the market's wicked turn against high multiple growth stocks, and Roku's own missed guidance and rising costs. But this company's sales growth is still healthy, and it sits in a powerful gatekeeper position at the nexus of TV's transition from legacy platforms to streaming. I expect that to continue, and Roku's position to remain, driving value that is impressive.”

Sirius XM Holdings

Crockett started coverage of Sirius XM Holdings Inc SIRI with a Buy rating and a price target of $8.

“This company remains a durable and growing subscription entertainment business, able to withstand the pressures of fewer car sales (which lowers sub growth) and less commuting (when a lot of listening happens.) An increment of new growth is emerging from its exposure to podcasting via acquisitions including Stitcher and AdsWizz,” the analyst wrote.

Snap

The Rosenblatt Securities analyst began coverage of Snap Inc SNAP with a Buy rating and a price target of $49.

“User growth is scarce at social media companies of late, but not really at youth-focused Snap, which grew its average global daily actives 20% in 2021, and sees a 20% rise in 1Q22 … Resilient user growth makes Snap uniquely investable in the social media group,” Crockett stated in the note.

Paramount Global

Crockett launched coverage of Paramount Global PARA with a Sell rating and a price target of $29.

“The more streaming rises, the more pressure there will be, industry-wide, on traditional TV. I see this netting out for Paramount long-term with a very muted earnings trajectory,” the Rosenblatt Securities analyst wrote.

Warner Bros Discovery

Analyst Crockett started coverage of Warner Bros Discovery, Inc. WBD with a Sell rating and a price target of $20.

The merger “improves both companies' positions via the ability to rationalize and streamline costs and product offerings,” the analyst said. “But it does nothing to create new hit shows that would not have been made already by these companies separately. And it doesn't change the fact that their streaming investments accelerate headwinds for secularly challenged TV channels. I see this netting out to a muted long-term trajectory in cash flow,” he wrote.