Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
Investing.com - Wells Fargo (NYSE:WFC) increased its price target on Gray Television (NYSE:GTN) to $5.00 from $4.50 on Monday, while maintaining an Equal Weight rating on the stock. According to InvestingPro data, the stock currently trades at $4.13, with metrics suggesting undervaluation - trading at just 0.2x book value and 2.7x earnings.
The firm cited deleveraging and free cash flow accretion from mergers and acquisitions as key factors behind the approximately 10% increase in the target price. Wells Fargo raised its target multiple to 7.4x in its valuation model.
Wells Fargo noted that while the announced deals are "constructive," Gray Television’s operations "aren’t out of the woods" due to the company’s debt structure. The firm highlighted that 2026 will be "organically leveraging" as the television advertising cycle shifts from the presidential election to mid-term elections.
The research firm identified sustainable leverage of 4-4.5x as the key threshold that would make Gray Television "more appealing to equity investors."
Gray Television is a television broadcasting company that owns and operates television stations and digital properties in various markets across the United States.
In other recent news, Gray Television Inc . announced its second-quarter 2025 earnings, which showed a significant miss on earnings per share (EPS) expectations. The company reported an EPS of -$0.71, which was lower than the forecasted -$0.37. On a positive note, Gray Television’s revenue slightly exceeded projections, coming in at $772 million compared to the expected $766.31 million. Despite this revenue beat, the market reacted unfavorably to the earnings miss. The financial results have drawn attention from investors, highlighting the importance of meeting EPS forecasts. These developments are part of the ongoing financial performance review of Gray Television. Analysts and investors are closely monitoring the company’s ability to align with earnings expectations in future quarters.
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