B.Riley initiates Angel Studios stock coverage with buy rating

B.Riley initiated coverage on Angel Studios Inc. (NYSE:ANGX) with a Buy rating and set a price target of $7.00 on February 25, 2026, recognizing the company's unique approach to faith-based entertainment and its significant growth potential in the video streaming market. The stock currently trades at $3.26, representing substantial upside potential according to the firm's analysis. Analyst targets range from $8 to $14, with a consensus recommendation of Buy across multiple firms that have recently initiated coverage on the company. The financial firm highlighted Angel Studios' distinctive business model centered on production and distribution of visual media targeting a faith-based niche within the competitive video streaming landscape. Angel Studios operates through the Angel Guild, a membership program where subscribers vote to select movies and television shows, support theatrical releases, and help fund new projects. This innovative approach has proven successful as the Angel Guild represents 64% of trailing twelve-month total revenue and grew an impressive 555% over that period. The membership program currently boasts more than 2 million subscribers, with recent data showing a doubling of the membership base in just nine months and a 25% increase since the end of the third quarter. Financially, the company posted revenue of $242.66 million over the last twelve months with remarkable 110% revenue growth, though it remains unprofitable with a Financial Health score rated as 'WEAK.' Looking ahead, B.Riley projects paying members will increase to 3.4 million through fiscal year 2027, representing a compound annual growth rate approaching 80%. The firm estimates this would generate an annual run-rate exceeding $480 million in revenue, or 87% of the total. These projections are based on aggressive marketing spend, a robust content pipeline, and favorable filmmaker economics. The company's recent success includes their animated musical 'David' grossing $22 million domestically in its opening weekend, marking Angel Studios' strongest theatrical opening to date and setting a new record as the highest-grossing faith-based animated theatrical release ever.