Wells Fargo Says TEGNA (NYSE: TGNA) Deal Could be Blocked by FCC

The analyst comments "The FCC's move suggests that a deal for TGNA will break. For TGNA, we apply an ~6x EV/EBITDA multiple (prior 8x) on CY23/24E EBITDA since it looks like the deal is breaking. Our $20 price target and Equal Weight rating is based on parity to NXST on CY23/24 P/FCF but incl. an ASR by TGNA to reduce its sharecount. The FCC could deny the deal or aspects of it (e.g., required divestitures) rendering it economically untenable."