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Corus Entertainment Underperform Rating, $0.01 Price Target, Confirmed at National Bank of Canada

BY MT Newswires | ECONOMIC | 09/25/25 01:27 PM EDT

01:27 PM EDT, 09/25/2025 (MT Newswires) -- National Bank of Canada on Wednesday maintained an underperform rating and $0.01 price target on the shares of Corus Entertainment (CJR-B.TO) while providing an earnings preview for the media company's fiscal fourth quarter.

The bank noted that Q4 could get reported Oct. 24 unless it comes earlier amid anticipated debt restructuring.

According to the bank, Q4 TV ad sales is seeing "greater pressure than anticipated." For the fourth quarter, the bank estimates TV ad sales to fall 23.4%, TV subscriber fees to fall 5.4%, TV other to be down 5%, and radio to fall 12%.

"We have total revs -13.7% to $232.6M (CE $237.6M), Adj. EBITDA -36.2% to $27M (CE $30.9M), Adj. EPS -$0.09 vs. -$0.02 (CE -$0.10), and FCF per company calculations at -$23.7M vs. $39.1M," said analyst Adam Shine.

The bank further noted that the company on March 21 completed an assignment of all indebtedness and obligations under its amended/restated credit agreement dated Oct. 24, 2024 to existing Canadian strategic debtholders who took over its credit facilities.

"Corus has more breathing room through the rest of this calendar year before covenant falls to 4.25x, but leverage is rising, and debt restructuring is inevitable and just a matter of when this fall," said Shine.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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