Guggenheim downgrades TEGNA stock rating to Neutral following Nexstar acquisition

Published 21/08/2025, 14:28
Guggenheim downgrades TEGNA stock rating to Neutral following Nexstar acquisition

Investing.com - Guggenheim has downgraded TEGNA, Inc. (NYSE:TGNA) from Buy to Neutral and removed its previous $19 price target following Nexstar’s acquisition announcement. TEGNA’s stock, which has delivered an impressive 59% return over the past year according to InvestingPro data, is currently trading near its 52-week high of $21.19.

The rating change comes after Nexstar entered into a definitive agreement to acquire TEGNA for $22 per share in cash, which was announced on Tuesday.

Guggenheim cited the acquisition as the primary reason for the downgrade, noting that the firm views the transaction as "an excellent outcome for both companies."

The research firm specifically highlighted the "favorable regulatory backdrop" as a positive factor for the deal between the two media companies.

Guggenheim had previously maintained a Buy rating on TEGNA stock with a $19 price target, which has now been removed in light of the pending acquisition.

In other recent news, TEGNA Inc. reported its second-quarter 2025 earnings, revealing an earnings per share of $0.44, which exceeded analyst expectations of $0.36 by 22.22%. Despite the earnings beat, broader market concerns contributed to a cautious investor outlook. In a significant development, Nexstar Media Group (NASDAQ:NXST) announced a $6.2 billion acquisition of TEGNA in an all-cash deal. The transaction values TEGNA at $22.00 per share, representing a 31% premium over its average 30-day stock price. The acquisition has been unanimously approved by TEGNA’s board of directors and will result in a combined entity with 265 full-power television stations across 44 states and the District of Columbia. These developments reflect a period of significant change and growth for TEGNA.

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