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Research Alert: CFRA Raises Opinion On Shares Of Tegna To Buy From Hold

05/10/2021 10:06

02:05 PM EDT, 05/10/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price by $4 to $23 (1.9% yield after a 36% dividend hike in March) on '22 EV/EBITDA of 7.5x, near peers. We raise '21 and '22 EPS estimates by $0.08 and $0.18 to $2.04 and $2.97. We see TGNA strategically and increasingly pivoting to a more diversified and relatively stable base of high-margin subscription (projected for '21 growth of mid- to high-teens in revenue and mid- to high-20s in profits). Also, we see accelerating traction on the digital and over-the-top (OTT) platforms, with audience engagement and monetization at both Premion (ad-supported streaming) and the newly acquired Locked On (sports podcast) set to further benefit from the return of live sports. Q1 adjusted EPS of $0.52 vs. $0.43 was $0.03 above consensus. Revenue rose 6% as subscription and ads/marketing services rose 16% and 9% to record levels, the former reflecting improving subscriber trends and the latter fueled by robust online ads at Premiom (up 50%+). Adjusted EBITDA margin widened 70 basis points.