Citigroup Upgrades Belo Corp (BLC) to Buy
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Price: $14.01 --0%
Rating Summary:
2 Buy, 0 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 2 | New: 2
Rating Summary:
2 Buy, 0 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 2 | New: 2
Trade BLC Now!
Citigroup upgrades Belo Corp (NYSE: BLC) from Hold to Buy.
Citigroup analyst says, "We are upgrading BLC as we believe the 12 month risk/reward on BLC shares is compelling at current levels for the following reasons: 1) Valuation spread to peers At historical high: With gap stretching to over 1,000 basis points, 250 bps above previous all time high in 2003; 2) On Sum Of the parts getting newspaper group for free: In fact, if Belo's separate businesses were to trade in line with the average of its standalone peers, the stock would be worth $33 or 61% above current prices; 3) Belo has many levers to unlock value: Given low leverage and healthy free cash flow Belo has many options including, heightened share buybacks, levered recap, increased dividend, special dividend, spin off or Newspaper or TV unit, or tracking stock; and 4) Proprietary retransmission fee analysis tells us our estimates are too low. We performed a proprietary analysis of what Belo's retransmission fees could be worth above its current $22 million in fees and believe that the value from such fees could be worth as much as $1.75 to $3.75 to Belo's stock."
Citigroup analyst says, "We are upgrading BLC as we believe the 12 month risk/reward on BLC shares is compelling at current levels for the following reasons: 1) Valuation spread to peers At historical high: With gap stretching to over 1,000 basis points, 250 bps above previous all time high in 2003; 2) On Sum Of the parts getting newspaper group for free: In fact, if Belo's separate businesses were to trade in line with the average of its standalone peers, the stock would be worth $33 or 61% above current prices; 3) Belo has many levers to unlock value: Given low leverage and healthy free cash flow Belo has many options including, heightened share buybacks, levered recap, increased dividend, special dividend, spin off or Newspaper or TV unit, or tracking stock; and 4) Proprietary retransmission fee analysis tells us our estimates are too low. We performed a proprietary analysis of what Belo's retransmission fees could be worth above its current $22 million in fees and believe that the value from such fees could be worth as much as $1.75 to $3.75 to Belo's stock."
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