NEW YORK (TheStreet) --AMC Networks (AMCX) was downgraded to "hold" from "buy" at Topeka Capital Markets on Tuesday morning.

The firm said it lowered its rating on the entertainment company based on a valuation call.

Topeka maintained its $85 price target on AMC Networks.

"We're cutting AMCX from 'buy' to 'hold' for the simple reason that the stock has performed in line with our 'buy' rating - up 28.6% just this year alone (the S&P 500 is up 3.1% thus far in 2015), and up 27.3% since initiating coverage on February 3, 2014, accentuating how unloved the name was virtually all of last year, and likewise, how dramatically that sentiment has shifted," Topeka said in an analyst note.

"With AMCX now sitting a mere 3.6% away from our target, we cannot in good conscience maintain our highest rating," the note continued.

Separately, TheStreet Ratings team rates AMC NETWORKS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate AMC NETWORKS INC (AMCX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, solid stock price performance, increase in net income and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 3.9%. Since the same quarter one year prior, revenues rose by 27.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for AMC NETWORKS INC is rather high; currently it is at 60.79%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.08% is above that of the industry average.
  • Powered by its strong earnings growth of 67.67% and other important driving factors, this stock has surged by 34.57% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AMCX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 69.4% when compared to the same quarter one year prior, rising from $71.37 million to $120.92 million.
  • AMC NETWORKS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMC NETWORKS INC reported lower earnings of $3.62 versus $4.01 in the prior year. This year, the market expects an improvement in earnings ($4.77 versus $3.62).
  • You can view the full analysis from the report here: AMCX Ratings Report