Sinclair Broadcast (SBGI) Gets a Buy Rating from Benchmark Co.

By Jason Carr

In a report released today, Daniel Kurnos from Benchmark Co. maintained a Buy rating on Sinclair Broadcast (SBGIResearch Report), with a price target of $39. The company’s shares closed on Friday at $29.77.

Kurnos wrote:

“We agree that Auto isn’t likely to post much, if any, upside in 1Q despite some comps in the down-teens range but see growing categories like Services largely making up the shortfall, leaving us feeling that 1Q currently looks more like 4Q post-election than a downward reset. We note that Sinclair has one of the easiest comparisons (-5% core in 1Q18). We suspect Sinclair’s potential pursuit of RSNs may not be getting a fair evaluation due to their nature and possible purchase price. We can buy the arguments that the RSNs 1) reduce dependency on advertising; 2) increase revenue/cost visibility; and 3) enhance the content portfolio, all of which should be multiple expansive.”

According to TipRanks.com, Kurnos is a 5-star analyst with an average return of 9.6% and a 53.7% success rate. Kurnos covers the Services sector, focusing on stocks such as Nexstar Media Group Inc, Booking Holdings Inc, and Zillow Group Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Sinclair Broadcast with a $38 average price target.

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The company has a one-year high of $40.15 and a one-year low of $25.13. Currently, Sinclair Broadcast has an average volume of 1.38M.

Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock.

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Sinclair Broadcast Group, Inc. is a television broadcasting company, which engages in the provision of content on local television stations and digital and other platforms. It operates through Broadcast segment. The Broadcast segment provides free over-the-air programming to television viewing audiences in the communities through local television stations.