Goldman Sachs Lowers Versant Media Group Price Target Amid Advertising Concerns
Goldman Sachs has cut its price target on Versant Media Group (ticker not mentioned) to $43 from $46, while maintaining a Neutral rating. The firm cited reduced advertising revenue expectations and ongoing linear distribution headwinds.
The analyst, Michael Ng, reduced the advertising revenue estimate for the third quarter of 2026 to $376 million, down 5% year-over-year and below the prior estimate of $394 million. This reduction was attributed to a seasonal slowdown and continued secular pressure on Pay TV, partially offset by strong ratings at CNBC and MS NOW.
Goldman Sachs forecasts third-quarter 2026 EBITDA of $315 million, in line with Visible Alpha Consensus Data of $314 million, and total revenue of $1.58 billion versus consensus of $1.57 billion. Linear distribution revenue is expected to reach $934 million, down 6% year-over-year.
The firm expects programming and production costs to increase 2% year-over-year to $760 million, driven by the timing of sports rights including the WNBA, NASCAR, the Presidents Cup, and the Bundesliga.