Two brokerages have opened coverage on Angel Studios with Buy recommendations, spotlighting the company’s membership-driven approach and its emphasis on faith-oriented programming as key differentiators in a crowded streaming market.
B. Riley Financial assigned a $7 price objective for the stock, a level the firm says implies more than 100% upside from current prices. Texas Capital likewise began coverage with a Buy rating, setting a $6.50 target.
Central to both firms’ investment theses is Angel’s Angel Guild - a platform that enables members to vote on film and television projects, support theatrical releases and participate in funding new content. B. Riley noted that the guild represented the largest source of revenue for the company, accounting for 64% of trailing 12-month revenue, and that it was the fastest-growing segment, increasing 555% over the same period.
Based on their modeling, B. Riley projects that paying members could reach 3.4 million by fiscal 2027, which the brokerage said corresponds to a compound annual growth rate of roughly 80%. The firm estimates that membership at that scale would imply an annual revenue run rate above $480 million, or about 87% of total revenue.
Despite those growth expectations, both firms acknowledged recent weakness in the stock. Shares have fallen about 75% since the company completed its de-SPAC transaction in mid September, while the Russell 2000 had posted a roughly 10% gain over the same interval. B. Riley attributed the stock’s underperformance to Angel’s limited public company operating history, the absence of profitability to date and broader market weakness.
On valuation metrics, the stock was cited as trading at approximately 1.3 times B. Riley’s 2026 estimate for Angel Guild revenue, in contrast to about 6.3 times for Netflix by the same measure.
Texas Capital emphasized that management’s near-term priority of expanding guild membership may necessitate external capital, but said this focus should help build a more stable recurring revenue base. The brokerage also expects Angel Studios to achieve positive adjusted EBITDA by 2028, a milestone that could support higher valuation multiples over time.
Note on available information - The coverage and figures described here reflect the assessments and projections provided by B. Riley Financial and Texas Capital as reported. No additional forecasts or external data have been added.