UPDATE: BofA Securities Downgrades iHeartMedia (IHRT) to Neutral
Get Alerts IHRT Hot Sheet
Rating Summary:
3 Buy, 3 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Join SI Premium – FREE
BofA Securities analyst Jessica Reif Ehrlich downgraded iHeartMedia (NASDAQ: IHRT) from Buy to Neutral with a price target of $10.00 (from $30.00) on June 24th, we've updated the article to include detail behind the downgrade. CY22E EBITDA drops to $1.03bn from $1.1bn to reflect additional revenue headwinds and higher expenses. The reduction in EBITDA also pulls down CY22E FCF to $396mn from $430mn.
The analyst stated "We are downgrading IHRT to Neutral from Buy and lowering our PO to $10 due to increasing macroeconomic headwinds. While shares have declined considerably YTD and valuation appears undemanding across several metrics such as EV/EBITDA or FCF, we struggle to find a catalyst that drives shares higher near term. Our lower PO is based on ~5.6x our CY23E EV/EBITDA (vs. ~8.2x previously), which represents a significant ~40% premium to radio comps. We believe this premium is warranted given the strength of IHRT’s brand platform and their emerging, fast growing digital business. However, IHRT is hindered by exposure to highly cyclical broadcast radio advertising revenues coupled with elevated leverage, creating a challenging backdrop for shares in the near term. These headwinds will likely overshadow continued momentum in digital and a likely uplift in 2H political advertising."
For an analyst ratings summary and ratings history on iHeartMedia click here. For more ratings news on iHeartMedia click here.
Shares of iHeartMedia closed at $8.39 yesterday.
You May Also Be Interested In
- Equifax (EFX) PT Raised to $240 at Morgan Stanley
- Lam Research (LRCX) PT Raised to $1,030 at Needham
- CLSA Upgrades BNK Financial (138930:KS) to Outperform (2)
Create E-mail Alert Related Categories
Analyst Comments, Analyst PT Change, DowngradesSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!