Analysts Offer Insights on Services Companies: Bravo Brio (NASDAQ: BBRG), Genco Shipping (OTCBB: GNK) and AMC Networks (NASDAQ: AMCX)

By Jason Carr

Companies in the Services sector have received a lot of coverage today as analysts weigh in on Bravo Brio (NASDAQ: BBRG), Genco Shipping (OTCBB: GNK) and AMC Networks (NASDAQ: AMCX).

Bravo Brio (NASDAQ: BBRG)

In a report released yesterday, Andy Barish from Jefferies reiterated a Hold rating on Bravo Brio (NASDAQ: BBRG), with a price target of $5. The company’s shares closed yesterday at $3.85, equals to its 52-week low of $3.85.

Barish commented:

“3Q blended SSS of -5.3% was in line with our expectations, but inefficiencies through most of the quarter related to the roll-out of new menus at both Bravo! and Brio resulted in more deleveraging than we had modeled resulting in a loss of $0.16 vs. Jef/Cons -$0.11/-$0.07. 4Q has started out tough as well with SSS down ~5%, including Hurricane Matthew.”

According to TipRanks.com, Barish is a 4-star analyst with an average return of 3.8% and a 46.8% success rate. Barish covers the Services sector, focusing on stocks such as Popeyes Louisiana Kitchen, Buffalo Wild Wings, and Ruth’s Hospitality.

Bravo Brio has an analyst consensus of Hold, with a price target consensus of $5.

Genco Shipping (OTCBB: GNK)

In a report released yesterday, Douglas Mavrinac from Jefferies reiterated a Buy rating on Genco Shipping (OTCBB: GNK), with a price target of $9. The company’s shares closed yesterday at $5.52, close to its 52-week low of $3.62.

Mavrinac observed:

“Yesterday after the market close, Genco reported a 3Q16 EPS loss of $3.79, excluding one-time items, which topped our estimate of an EPS loss of $5.80 primarily due to better than expected charter rates earned during the quarter.”

According to TipRanks.com, Mavrinac is ranked 0 out of 5 stars with an average return of -9.0% and a 34.6% success rate. Mavrinac covers the Services sector, focusing on stocks such as Navios Maritime Partners Lp, Ship Finance International, and Golden Ocean Group Limited.

Genco Shipping has an analyst consensus of Moderate Buy.

AMC Networks (NASDAQ: AMCX)

Jefferies analyst John Janedis reiterated a Hold rating on AMC Networks (NASDAQ: AMCX) yesterday and set a price target of $57. The company’s shares closed yesterday at $51.64, close to its 52-week low of $46.17.

Janedis said:

“AMCX’s reported 3Q domestic adv. decline of 10% was disappointing relative to our expectations (-5%), largely driven by soft ratings at the AMC and WE tv networks. However, mgmt’s expectation of an improvement to MSD adv growth in 4Q (JEFe: +6%), was much better than the “bear” thesis would suggest. Ad Growth Impacted by Ratings Trends. Lower than expected ad growth in the national nets segment (-10% vs. JEFe: -5%) was largely driven by weaker ratings at the AMC network, particularly for Fear the Walking Dead/Movies. Looking ahead to 4Q, mgmt guided to a rate of growth of 6%. Notably, the first two episodes of season 7 of The Walking Dead are up 10% in total viewers on avg. (Live +SD) – we do not believe that the guide to MSD growth in 4Q adv is predicated on sustained YoY growth in viewership for season 7 of TWD. Distribution Growth Steady. National networks distribution growth of 8% was slightly lighter than our expectations (+10%), largely due to a modest deceleration in affiliate fee growth to LSD from MSD (Likely on MVPD M&A). This was largely offset by strong growth (20%+), in non-affiliate fee revenue streams (licensing / SVOD).”

According to TipRanks.com, Janedis is a 4-star analyst with an average return of 2.6% and a 46.4% success rate. Janedis covers the Services sector, focusing on stocks such as Interpublic Group of Companies, Live Nation Entertainment, and Madison Square Garden Co.

Currently, the analyst consensus on AMC Networks is Hold and the average price target is $63.80, representing a 23.5% upside.

In a report issued on October 20, Pacific Crest also downgraded the stock to Hold.