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Investing.com - Guggenheim lowered its price target on Sinclair Broadcasting (NASDAQ:SBGI) stock to $19.00 from $20.00 on Wednesday, while maintaining a Buy rating following the company’s second-quarter results. The stock, currently trading at $14.75, offers a notable 6.68% dividend yield and has maintained dividend payments for 16 consecutive years, according to InvestingPro data.
The firm updated its model to reflect Sinclair’s Q2 2025 performance and forward guidance. Management has guided third-quarter revenue between $752 million and $776 million, with EBITDA projected between $71 million and $93 million.
Guggenheim’s model accounts for ongoing advertising headwinds stemming from macroeconomic uncertainty, reduced political advertising in a non-election year, and the impact of subscriber attrition on retransmission revenue.
The firm forecasts $350 million in average annual free cash flow for the 2024/2025 cycle, implying approximately $5.20 per share, which represents a roughly 35% free cash flow yield.
Earlier this week, Sinclair launched a comprehensive strategic review for its Broadcast Business, with the board and management exploring options to unlock value, including potentially separating Ventures, forming strategic partnerships, pursuing business combinations, and optimizing the overall portfolio.
In other recent news, Sinclair, Inc. announced a comprehensive strategic review of its broadcast business, aiming to explore value-enhancing opportunities such as acquisitions, strategic partnerships, and business combinations. This decision, authorized by the company’s Board of Directors, signals potential industry consolidation moves. Additionally, Sinclair is considering separating its Ventures portfolio through a spin-off or split-off, which could unlock the potential of both businesses. In terms of financial performance, Sinclair’s Q2 2025 earnings call revealed a mixed outlook. The company exceeded its midpoint guidance for Consolidated Adjusted EBITDA and maintained a strong cash position. However, it faced declines in core advertising and distribution revenues due to ongoing macroeconomic challenges. These recent developments highlight Sinclair’s efforts to adapt and grow in a changing industry landscape.
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