Thunderbird Entertainment shares climb after Canaccord bumps price target to C$5.50

Thunderbird Entertainment Group Inc (CVE:TBRD) (OTCMKTS:THBRF) shares are up more than 3% after Canaccord Genuity upped its price target to C$5.50 from $5 and maintained its Buy rating in a note to clients. The media company reported fiscal third quarter results on Thursday, and its C$37.7 million revenue came in above Canaccord’s C$35.2 million forecast, meaning Thunderbird beat the firm’s expectations for the fourth consecutive quarter. The fact that Thunderbird’s backlog is up 19% to C$102.2 million and that much of that backlog is related to the next 12 months speaks well for 2022 expectations, the firm said.  READ: Thunderbird Entertainment fiscal 3Q revenue jumps 27% on animation studio production and more “Management noted that through Q3 the company was in production for 21 shows (10 of which are IP) commissioned by Netflix, Peacock, Apple TV+, Nickelodeon, PBS, Bell and Discovery, which is similar to the 21 in Q2/21,” the firm wrote. “The company is seeing particular success with some of its key kids' franchises including Last Kids on Earth (for Netflix) which has completed its third season and notably in Q3 announced an interactive special episode as well as a first ever graphic novel.  “Meanwhile, unscripted growth remains robust with its long-running shows continuing to be picked up for subsequent seasons, in addition to new shows like Mud Mountain Haulers.” Canaccord also pointed to merchandise and game revenue opportunities. “The company also announced the setting up of its own merchandise and licensing division, a further sign of management’s increasing focus on driving product revenues,” Canaccord wrote. “We believe that the company has the potential to drive additional growth from the development of merchandise. We note in particular, progress with respect to the Last Kids on Earth franchise, which has various product deals (including Apparel) set up as well as a branded video game set for release in June this year.” Lastly, the firm highlighted Thunderbird’s M&A potential “The company’s net cash position stood at C$18.8 million as of Q3/21, which we believe could be put to work towards making acquisitions to spur further growth,” the firm wrote. “In particular, we believe the company is looking at the potential for international expansion, which we view as prudent given the demand from streaming platforms for multicultural content that will drive subscriber growth outside of North America.  “We also believe that M&A can be a source of prospective IP, which may be underexploited presently, but could be potentially developed by Thunderbird due to its extensive distribution relationships including the top [subscription video] platforms.” Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com Follow him on Twitter @andrew_kessel