AMC Networks Downgraded To Underperform From In-Line At Imperial Capital

Imperial Capital analyst David Miller downgraded AMC Networks (AMCX) to Underperform from In-Line with a price target of $41, down from $53.

The stock closed Monday up 6c to $46.80.

The analyst is concerned that the company's formal streaming services "will eventually get boxed out by the larger, more integrated services." Further, AMC segmenting out each genre and creating four different services, as opposed to one, "is confusing, and will lead to coordination problems," Miller tells investors in a research note.

He believes the company wants to "have its cake and eat it too," by "slowly dipping its toes into the streaming arena, but is still heavily reliant on the traditional bundle, which is in secular decline."