Benchmark reiterates $8 price target on Grupo Televisa stock

Published 11/02/2025, 15:32
Benchmark reiterates $8 price target on Grupo Televisa stock

On Tuesday, Benchmark analysts maintained their optimistic stance on Grupo Televisa SA (NYSE:TV), reiterating a Buy rating and a price target of $8.00. According to InvestingPro data, analyst price targets for Televisa range from $2.00 to $10.68, with the stock currently trading at $1.98. The company appears undervalued based on InvestingPro’s Fair Value analysis. The firm believes the current market price of Televisa shares does not fully reflect the company’s position as a global leader in Spanish language television through its TelevisaUnivision venture, which includes the ad-supported streaming service ViX. The analysts pointed out that despite the stock trading as if in distress, they project the net debt to EBITDA ratio to improve significantly by the end of 2025.

Televisa’s financial health appears robust, with the company’s cable (izzi) and satellite (Sky) operations in Mexico expected to continue generating strong free cash flow. InvestingPro data shows a healthy current ratio of 2.43, confirming strong liquidity, while the company maintains a "GOOD" overall Financial Health score. This financial stability, according to Benchmark, is not being acknowledged in the stock’s present valuation. The analysts highlighted that even in the face of a difficult advertising market, they anticipate TelevisaUnivision’s net debt will reduce from a multiple of 5.9x, as recorded on September 30, 2024, to 5.2x by the end of 2025. They predict even more rapid progress following that period.

The report also noted that Televisa’s debt situation is manageable, with no debt maturities looming until June 2027, allowing the company ample time to further improve its balance sheet. This forecast of declining leverage is seen as a positive indicator for the company’s future financial stability and its ability to invest in growth opportunities.

Benchmark’s assessment underscores their confidence in Televisa’s strategic initiatives, particularly its focus on the streaming market through ViX and its core operations in Mexico. The analysts’ reiterated price target suggests they believe the stock has the potential to appreciate from its current levels.

Investors may find reassurance in Benchmark’s outlook, which suggests that Televisa’s current stock price could offer an attractive entry point, given the company’s leadership in the Spanish language media space and its expected improvement in financial metrics over the next few years. For deeper insights into Televisa’s valuation and growth prospects, InvestingPro subscribers can access comprehensive research reports, including detailed financial analysis and peer comparisons, along with 6 additional exclusive ProTips.

In other recent news, Grupo Televisa has been under the scrutiny of financial analysts. Benchmark has maintained a "Buy" rating on Grupo Televisa’s stock, despite lowering the target price to $8.00 due to the recent weakness of the Mexican peso and uncertainties surrounding tariffs imposed by the Trump administration. The firm noted that while 65% of third-quarter revenues for the joint venture TelevisaUnivision were generated in the U.S., tariff uncertainties and currency risks remain.

On the other hand, JPMorgan downgraded Grupo Televisa’s stock from Overweight to Neutral, citing concerns about the company’s short-term growth catalysts. Factors such as sluggish growth in Mexican Broadband, margin contraction in the Mexican Operating Segment in 2025, and lack of substantial new information regarding Televisa’s streaming services contributed to this reassessment.

In addition to these developments, Grupo TelevisaUnivision has initiated further layoffs as part of its ongoing efforts to streamline operations and improve financial performance. The recent developments reflect the dynamic and evolving landscape in which Grupo Televisa operates.

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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