Wedbush Upgrades Entravision Communications (EVC) Two-Notches to Outperform

January 9, 2013 7:28 AM EST
Get Alerts EVC Hot Sheet
Price: $5.10 -0.97%

Rating Summary:
    3 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Wedbush upgraded Entravision Communications (NYSE: EVC) two-notches from Underperform to Outperform with a price target of $2.50 (from $1.40) citing growth and an undemanding valuation.

The firm comments, "The key to our call – on our new 2014 estimates, our higher PT reflects compelling reward/risk; our 2013E EPS goes above Street to $0.11 from $0.08 on debt repayment. New opportunities for 2013 are border markets, Affordable Care Act advertising, and radio network expansion – a competitor conference this week could be a catalyst for broader investor focus on these. EVC is staffing up to capture new spending from Mexican marketers targeting the border markets. Of the 47m uninsured in the U.S., ~30% are Latino, and EVC sees as an example of the ad opportunity, the $90m being budgeted in 2013 for messaging around the changes in California, where ~60% of uninsured are Latino. We estimate that EVC's radio network could generate up to $5m more in revenue in 2013 on its 2012 expansion to 313 affiliates targeting a ~$100m market."

For an analyst ratings summary and ratings history on Entravision Communications click here. For more ratings news on Entravision Communications click here.

Shares of Entravision Communications closed at $1.69 yesterday.

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