UPDATE: Wells Fargo Double Downgrades Sinclair Broadcasting (SBGI) to Underweight

Wells Fargo analyst Steven Cahall downgraded Sinclair Broadcasting (NASDAQ: SBGI) from Overweight to Underweight with a price target of $16.00 (from $30.00).

The analyst comments "While inexpensive, SBGI faces multiple pressures that we think are greater than TV Broadcast peers. As these pressures mount, we double-downgrade the shares to Underweight given the severity of revisions. We think 2023 will be tougher for the group, and SBGI is most at-risk. Our biggest concern remains net retrans, which should be negative (again) in '23, and we're already below the 3-year management guidance given a couple of months ago. Our sub churn estimate is ~2% worse than SBGI management's. We're trimming CY22/23E EBITDA by 4% and FCF by 2% (after cutting nearly 10% in Monday's Preview note). SBGI is inexpensive, but so are peers, so on a relative basis, we downgrade to Underweight."

For an analyst ratings summary and ratings history on Sinclair Broadcasting click here. For more ratings news on Sinclair Broadcasting click here.

Shares of Sinclair Broadcasting closed at $18.47 yesterday.

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