UPDATE: Deutsche Bank Initiates Starz at Hold on Lack of Valuation Catalysts

Deutsche Bank initiated coverage on Starz

with a Hold rating and a $16.00 price target. Deutsche Bank commented, "We expect investors will remain concerned that future distribution renewals will incur price setbacks, similar to the recent renewals, while being reluctant to presume the necessary TV content success for Starz. With our outlook being flatish revenue and EBITDA, that leaves only deployment of FCF, a potential digital deal or M&A to drive Starz's stock. It is unclear how aggressively FCF will be returned to shareholders, but a stock repurchase plan would be well received. We do not expect a digital deal given mgmt's requirement that Starz be offered on a premium tier, which Netflix has already turned down." Starz closed at $15.69 on Friday.