UPDATE: Gray Television (GTN) PT Raised to $29 at Guggenheim

March 1, 2022 11:45 AM EST
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Price: $15.24 --0%

Rating Summary:
    10 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 6 | Down: 9 | New: 15
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(Updated - March 1, 2022 11:45 AM EST)

Guggenheim analyst Curry Baker raised the price target on Gray Television (NYSE: GTN) to $29.00 (from $28.00) while maintaining a Buy rating.

The analyst comments "We have updated our model following Gray's 4Q21 earnings. The company reported 4Q21 revenue of $721mm (vs. our $691mm) and adj EBITDA of $224mm (vs. our $192mm), with the outperformance driven by higher political and core advertising. Management continues to see improvement in core advertising, long-term retransmission growth, and a very robust 2022 political cycle. We forecast average annual 2022/23 FCF (ex the one-time items, common dividends) of $643mm, or ~$6.77 per share, implying a ~28% FCF yield. Gray expects to deploy its robust FCF towards deleveraging (same playbook for MDP/Quincy as Raycom), while remaining opportunistic on buybacks. Management guided 2022 FCF to be in excess of $800mm (ex common dividends, acquisition costs, one-time items) reflecting the accretive power of the MDP/Quincy acquisitions. Our EBITDA forecasts for 2022 and 2023 are $1,448mm (vs. $1,426mm prior) and $1,024mm (vs. $1,022mm prior), respectively. PT up to $29."

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