The Globe and Mail reports in its Thursday, Oct. 7, edition that Scotia Capital analyst Jeff Fan is keeping his "sector perform" recommendation for Wildbrain unchanged. The Globe's David Leeder writes that Mr. Fan boosted his share target by 70 cents to $3.60. He raised his financial expectations for Wildbrain after an analyst day event on Tuesday. He believes management's multiyear guidance reflects confidence in its content productions, including multiple projects in place for both Apple and Netflix.
He also sees "significant" potential upside if Wildbrain sold its library to a streaming company. Mr. Fan says in a note: "We think management did a good job walking investors through the roadmap for brand launches using Strawberry Shortcake as an example, which was relaunched in recent weeks. First, WildBrain has launched Strawberry Shortcake video games and short-form content on YouTube. In the coming months, Strawberry Shortcake will be featured in a new animated television series, and finally a toy and merchandise launch will follow in late 2022. We currently estimate 10-per-cent multiyear revenue growth for consumer products, which has potential upside as various brands are launched in the coming years."
© 2021 Canjex Publishing Ltd. All rights reserved.