TEGNA Inc Receives a Buy from Benchmark Co.

By Carrie Williams

In a report released today, Daniel Kurnos from Benchmark Co. reiterated a Buy rating on TEGNA Inc (NYSE: TGNA), with a price target of $20. The company’s shares closed on Friday at $15.35.

Kurnos observed:

“We acknowledge that we may be being conservative, but given TEGNA’s operating history, it seems prudent to take a cautious approach. Alternative, we strongly suspect our $2.25 million political forecast will prove light given TEGNA’s exposure to Atlanta and Virgina. 3Q guidance will be just as crucial as 2Q results, and we would expect underlying core pacings to improve materially ex-olympics, with the majority of the improvement coming from the absence of displacement. Retrans and initiative growth could combine to drive 3Q revenue flat y/y despite the absence of $38 million in political revenue. As a standalone business with the intent to continue scaling up themselves, we find shares of TEGNA to be modestly valued at 8x blended 2017/2018E EV/EBITDA. We acknowledge that operating results have been inconsistent, with the possibility of guidance given at their recent analyst day proving aggressive. However, using the low-end of their guidance range, as we have done, yields what we believe are fairly achievable yardsticks over the next 2 years, with Media revenue expected to grow at 3% and 13.5%, respectively.”

According to TipRanks.com, Kurnos is a 5-star analyst with an average return of 15.1% and a 61.2% success rate. Kurnos covers the Services sector, focusing on stocks such as Liquidity Services, Sinclair Broadcast, and 1-800 Flowers.com.

TEGNA Inc has an analyst consensus of Moderate Buy, with a price target consensus of $25.20.

The company has a one year high of $17.07 and a one year low of $11.47. Currently, TEGNA Inc has an average volume of 6.48M.

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TEGNA, Inc. is comprised of a dynamic portfolio of media and digital businesses which provides content that matters and brands that deliver. It operates through Media, and Digital segments. The Media segment is refers to the sale of advertising time on the television stations.