Piper Jaffray Cuts Price Target to $26 on Ascent Media (ASCMA) Following 3Q

Piper Jaffray maintained an Overweight rating on Ascent Media (NASDAQ: ASCMA), and cut the price target to $26.00 (from $45.00), following the company's 3Q earnings report. Ascent Capital reported revenue of $141.8M, which was modestly below the Street estimate of $143.2M. ASCMA also reported unit churn of 13.5%, which was up from 13.4% last quarter and 12.6% a year ago, though this was in-line with management's expectations.

Analyst Andrew Nowinski commented, "Ascent Capital reported relatively in-line 3Q15 results, though the elevated churn levels are now expected to remain elevated in the mid-13% range throughout 2016. However, adjusted EBITDA (Pre-SAC) increased 1.9% and management said the LiveWatch acquisition continues to exceed expectations, delivering profitable RMR and account growth. As such, we are maintaining an Overweight rating, but lowering our price target to $26 (prev $45) due to higher churn assumptions."

For an analyst ratings summary and ratings history on Ascent Media click here. For more ratings news on Ascent Media click here.

Shares of Ascent Media closed at $22.82 yesterday.

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