iHeartMedia stock price target raised by BofA to $1.90 on stable ad market

Investing.com - BofA Securities has raised its price target on iHeartMedia (NASDAQ:IHRT) to $1.90 from $1.60 while maintaining a Neutral rating on the stock. The company’s shares, currently trading at $1.86, have shown strong momentum with a 56% return over the past year, though InvestingPro data indicates the stock is fairly valued.

The firm anticipates iHeartMedia’s second-quarter results will largely align with company guidance, maintaining its revenue estimate of $921 million, representing a 1% year-over-year decline. This follows the company’s recent performance, with total revenue of $3.86 billion in the last twelve months and a concerning debt burden of $5.83 billion.

BofA Securities notes the advertising market appears to have stabilized throughout the quarter as peak tariff uncertainty has passed, with podcasting continuing as a bright spot for the company.

The firm expects podcasting to remain iHeartMedia’s fastest-growing segment in the second quarter, as it was in the first quarter.

Key revenue drivers for the quarter include broadcast revenue estimated at $394 million (down 7% year-over-year), digital revenue of $318 million (up 11%), networks revenue of $102 million (down 4%), sponsorship and events revenue of $39 million, and audio and media services revenue of $67 million.

In other recent news, iHeartMedia reported its financial results for the first quarter of 2025, revealing a 1% year-over-year increase in revenue, reaching $807.1 million. The company’s podcasting segment showed significant growth, with revenues up 28%, contributing to the overall performance. However, adjusted EBITDA remained flat at $105 million, reflecting challenges in traditional advertising sectors. Meanwhile, Goldman Sachs maintained a Neutral rating on iHeartMedia’s stock but raised the price target to $1.25, citing strong podcasting revenue growth but also highlighting challenges in the advertising market.

Additionally, iHeartMedia’s board of directors and Ernst & Young LLP were ratified as the independent auditor for the fiscal year ending December 31, 2025, during the company’s 2025 Annual Meeting of Stockholders. In a strategic move, iHeartMedia expanded its digital reach through a content distribution partnership with Audacy, making Audacy’s radio brands available on the iHeartRadio app. Despite these developments, iHeartMedia faces uncertainty in the advertising market, with mixed advertising trends and reduced certainty about meeting financial guidance without macroeconomic improvements. The company continues to focus on expanding its digital and podcast revenues while navigating broader market challenges.

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