TENGA, Inc. (TGNA) PT Lowered to $22 at Guggenheim
Guggenheim analyst Curry Baker lowered the price target on TENGA, Inc. (NYSE: TGNA) to $22.00 (from $24.00) while maintaining a Buy rating.
The analyst commented, "We have updated our model to reflect TGNA's 4Q22 earnings results announced this morning (link). Revenue of $917mm and adj EBITDA of $361mm compared to our $951mm and $395mm estimates, respectively (the delta was due to lower political revenue). Last Friday, the FCC's Media Bureau issued a hearing designation order for the pending Standard General-TEGNA transactions (link). The hearing designation asks the FCC's administrative law judge to review "material concerns in the record" related to how the proposed acquisition could artificially raise prices for consumers and result in job losses. TEGNA noted in its release it is "currently evaluating its options." Standard General issued the following statement vowing to continue onwards with the acquisition (link). Based on what we know at this time, the acquisition appears to be at risk. We are changing our valuation methodology back to a fundamentals-based approach. If the deal were to break, we would expect management to come out with an aggressive capital return program centered around buybacks (our model has $800mm in repurchases for both 2023 and 2024). PT down to $22 from $24."