Analyst Ratings February 24, 2026

Texas Capital Starts Coverage on Angel Studios with Buy Rating and $6.50 Target

Analyst cites membership growth and theatrical momentum as pathway to positive AEBITDA by 2028

By Ajmal Hussain ANGX
Texas Capital Starts Coverage on Angel Studios with Buy Rating and $6.50 Target
ANGX

Texas Capital Securities began coverage of Angel Studios Inc. (NYSE: ANGX) with a Buy rating and a $6.50 price target, implying almost 100% upside from the current $3.26 share price. The firm highlighted the company's creator-focused business model, membership expansion and recent box office success, while noting the near-term need for external capital as management scales the Angel Guild and theatrical initiatives.

Key Points

  • Texas Capital Securities initiated coverage on Angel Studios (ANGX) with a Buy rating and $6.50 target, implying nearly 100% upside from the $3.26 share price - impacts equity markets and media sector participants.
  • The firm emphasized Angel’s filmmaker-focused payment model and member-driven content approach as differentiators that support growth in paid Guild members and theatrical revenue - impacts streaming, theatrical distribution and creator-focused platforms.
  • Company milestones include surpassing two million paid Guild members (doubling since March 2025) and a record $22 million domestic opening for the animated musical "David," cited as the strongest theatrical debut to date - impacts entertainment and box office dynamics.

Texas Capital Securities has initiated coverage of Angel Studios Inc. (NYSE: ANGX) with a Buy rating and a price target of $6.50. At the time of the initiation the target implies nearly 100% upside relative to the prevailing share price of $3.26. The firm’s view aligns with a broadly bullish analyst consensus that currently sits at a Strong Buy, with other price targets reported in the $8 to $14 range.

In its report Texas Capital highlighted Angel Studios’ model for attracting filmmakers and audiences. The firm described the company as using a differentiated payment approach and development guidance to recruit creators, while offering consumers content that emphasizes uplifting themes and the ability to participate in shaping stories over time. That combination was identified as a core competitive feature of Angel’s platform.

Texas Capital noted management’s near-term priority is accelerating growth in the Angel Guild membership base. The firm said management’s push to expand paid Guild membership will likely require some external capital over the next couple of years as the company scales its membership and theatrical release strategy. Texas Capital expects that as membership rises it should establish a revenue baseline that helps the Angel Guild and theatrical efforts move toward self-sufficiency.

On the path to profitability, Texas Capital projected the company could reach positive adjusted EBITDA (AEBITDA) by 2028 if the membership and theatrical strategies deliver as planned. The research team said it is taking a cautious stance on potential valuation expansion over the next 12 months, but added that a transition to positive AEBITDA would likely bring Angel’s valuation multiple closer to, or above, its peer group average.

Analysts reflected in available research do not expect Angel Studios to be profitable in the current fiscal year, though the company holds more cash than debt on its balance sheet. That cash-dominant position was described as a constructive attribute while the company pursues growth investments tied to membership and content distribution.

Recent operational and commercial milestones were cited as supporting the bullish outlook. Angel Studios reported it surpassed two million paid Angel Guild members, effectively doubling its membership since March 2025. Management reached that milestone ahead of the end of the year, driven by a 25% increase in membership since the close of the third quarter.

On the theatrical front, Angel’s animated musical "David" opened to a domestic box office of $22 million in its opening weekend. Texas Capital and other analysts pointed to this result as the company’s strongest theatrical debut to date, exceeding the opening performance of its prior release, "The King of Kings." The box office outcome was referenced as evidence of the company’s ability to convert its audience into box office revenue.

Other broker activity noted in the market includes Roth/MKM initiating coverage of Angel Studios with a Buy rating and a $9.00 price target, describing the company as an "attractive, emerging growth media platform" with a focus on values-driven content.

Governance and compensation matters were also disclosed. Angel Studios’ board approved 2026 compensation for CEO Neal Harmon, effective January 1, 2026. The package includes a base salary of $550,000 in addition to 245,916 restricted stock units and 129,176 performance-based restricted stock units.

These operational milestones, analyst initiations and the board-approved executive compensation plan form the basis of the current coverage landscape, according to the research summarized. Texas Capital’s initiation anchors on member growth and theatrical results as the primary levers toward an improving AEBITDA profile, while cautioning that near-term capital needs and valuation uncertainty remain considerations for investors.

Risks

  • Near-term external capital needs - Texas Capital expects management’s push to grow Angel Guild membership will likely require external capital over the next couple of years, creating financing risk for the company and potential dilution for equity holders. This affects investors in the media and entertainment sectors.
  • Profitability timeline uncertainty - Analysts covered do not anticipate the company will be profitable this year, and the forecast of positive AEBITDA is targeted for 2028, leaving execution risk around member monetization and theatrical performance that could influence valuations in the broader media sector.
  • Valuation sensitivity - Texas Capital is taking a cautious view on valuation over the next 12 months; the firm notes that a move toward positive AEBITDA could shift the company’s multiple toward peer averages or higher, but absent clear EBITDA improvement the stock’s valuation could remain constrained, affecting market sentiment in the equity and media markets.

More from Analyst Ratings

Raymond James Cuts FIS Price Target After Margin Shortfall; Shares Near 52-Week Low Feb 24, 2026 Mizuho Moves Neptune Insurance to Neutral, Cites Limited AI Risk but Flags Valuation and Competition Feb 24, 2026 RBC Capital Starts Merck Coverage at Outperform, Sets $142 Target on Pipeline Momentum Feb 24, 2026 Stifel Starts Coverage of Palisade Bio with Buy Rating, Cites IBD Opportunity for PALI-2108 Feb 24, 2026 RBC Capital Starts AbbVie Coverage with Outperform Rating, Sees Re-rating Potential Feb 24, 2026