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Investing.com - TD Cowen has reduced its price target on Boston Omaha Corporation (NYSE:BOC) to $22.00 from $25.00 while maintaining a Buy rating on the stock. The company’s shares, currently trading at $12.55, have declined over 7.5% in the past week and are hovering near their 52-week low of $12.27.
The adjustment follows Boston Omaha’s second-quarter results, which fell short of TD Cowen’s expectations, particularly in the insurance segment which was negatively impacted by a higher loss ratio and reserve additions as a percentage of earned premium. Despite these challenges, InvestingPro data shows the company maintains strong liquidity with a current ratio of 2.05 and achieved 9.5% revenue growth in the last twelve months.
TD Cowen analyst Lance Vitanza indicated that the firm is reducing its second-half estimates for Boston Omaha’s billboard and insurance business segments based on the quarterly performance.
Despite lowering revenue expectations, TD Cowen noted that broadband remains a key source of improving margins for Boston Omaha Corporation.
The new $22 price target was calculated using a discounted cash flow (DCF) analysis, according to the research note.
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