Benchmark cuts Sinclair stock target to $29, maintains buy rating

Published 06/05/2025, 17:06
Benchmark cuts Sinclair stock target to $29, maintains buy rating

On Tuesday, Benchmark analysts revised the price target for Sinclair Broadcasting (NASDAQ:SBGI) shares to $29 from the previous $30, while still recommending the stock as a Buy. Currently trading at $15.41 with a P/E ratio of 3.26, InvestingPro analysis suggests the stock is undervalued. The adjustment comes as Sinclair prepares to open the broadcast earnings season on May 7, which could set expectations for the industry over the next couple of days.

Benchmark’s analysts have made slight reductions in their estimates but remain aligned with the consensus for the first quarter and the full year of 2025. With current EBITDA at $800 million and revenue of $3.55 billion, the company maintains strong fundamentals. They also anticipate higher revenue for 2026, though their EBITDA forecast is closer to consensus. This represents a significant change from previous years when analysts had concerns about the street’s numbers. Despite the ongoing economic uncertainty, Benchmark suggests that the consensus may be reasonably accurate unless conditions worsen significantly. InvestingPro subscribers can access detailed financial forecasts and 8 additional key insights about Sinclair’s future prospects.

Sinclair’s CEO, Chris Ripley, is expected to address the latest FCC (BME:FCC) Op Ed on reverse retransmission consent, a topic of debate regarding whether the FCC can implement changes without congressional approval. Benchmark analysts believe the FCC has the authority to do so, and even if it doesn’t, the ability to negotiate directly with virtual service providers would be a major positive shift for the industry.

The appointment of Jeff Blackburn, a former Amazon (NASDAQ:AMZN) executive, as the new CEO of the Tennis Channel is also drawing interest. Analysts are keen to see how his experience will contribute to the expansion of the platform, noting that this is a departure from previous expectations of a partial or full sale of the channel.

In addition to these developments, there is anticipation around Sinclair’s strategy regarding stock buybacks versus debt repayment. The company’s position on the spectrum of buyer versus seller is also of interest, with Benchmark analysts predicting that Sinclair may engage in both activities.

In other recent news, Sinclair Inc. has announced the appointment of Jeff Blackburn as the new Chairman and CEO of the Tennis Channel. Blackburn, who previously held a significant role at Amazon, will focus on expanding the network’s digital and global platforms. In another development, Sinclair has promoted Christina Tesauro to Senior Vice President of Sales for the Tennis Channel. Tesauro has been pivotal in developing partnerships and sales strategies, which have enhanced the network’s market presence. Additionally, Sinclair disclosed the upcoming retirement of Lucy Rutishauser, the company’s Executive Vice President and CFO. The company is actively searching for her successor, with Rutishauser expected to remain as a senior advisor. In a separate announcement, Sinclair has also reported the retirement of Dave Schwartz, Corporate Senior Vice President/Station Operations, effective June 30. Meanwhile, Benchmark analysts have noted that the broadcast television sector, including Sinclair, may face a challenging year due to potential economic downturns affecting advertising revenues. Despite these challenges, companies in the sector are pursuing restructuring plans to mitigate potential impacts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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