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Investing.com - Guggenheim has lowered its price target on Tegna, Inc. (NYSE:TGNA) to $21.00 from $22.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the company currently trades at an attractive P/E ratio of 6x and shows GREAT financial health with an overall score of 3.07 out of 5.
The firm has modestly adjusted its second-quarter and full-year outlook for both revenue and EBITDA for the broadcasting company. Guggenheim now forecasts 2025 revenue of $2.754 billion, down from its previous estimate of $2.762 billion, and EBITDA of $582 million, reduced from $588 million. The company has demonstrated strong financial performance, with last twelve months EBITDA of $856 million and a notable free cash flow yield.
The revised model assumes Tegna has placed share buybacks on hold as the company awaits Federal Communications Commission ( FCC (BME:FCC)) action on deregulation. Guggenheim’s forecast for distribution and AMS (VIE:AMS2) (advertising and marketing services) is slightly lower for the full year, while the firm raised its political advertising estimate.
The FCC appears poised to address the 39% national ownership cap, according to Guggenheim. Based on FCC Chairman Brendan Carr’s public comments, the firm expects the commission will move quickly toward broadcast deregulation following the installation of a third Republican Commissioner.
Guggenheim views Tegna as well-positioned to take advantage of potential deregulation with a focus on free cash flow accretive mergers and acquisitions.
In other recent news, TEGNA Inc. has reported its first-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $0.37, compared to the projected $0.32. The company also outperformed revenue forecasts, reporting $680 million against an anticipated $677.48 million, driven by increased retransmission revenue. Guggenheim has reacted positively by raising TEGNA’s stock price target from $20.00 to $22.00, while maintaining a Buy rating, citing the company’s robust financial position and strong balance sheet. Additionally, TEGNA has announced a quarterly dividend of 12.5 cents per share, payable on July 1, 2025, reflecting its commitment to returning value to shareholders.
Shareholders have approved all board proposals at TEGNA’s recent annual meeting, re-electing CEO Mike Steib and other directors for one-year terms. The shareholders also confirmed PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year 2025. TEGNA’s management has expressed interest in exploring merger and acquisition opportunities, especially with potential deregulation on the horizon. Meanwhile, the company continues to focus on digital innovation and cost-cutting measures to navigate macroeconomic challenges. These developments underscore TEGNA’s strategic initiatives and its ongoing efforts to maintain a competitive edge in the media industry.
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