iHeartMedia (IHRT – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Stephen Laszczyk from Goldman Sachs remains neutral on the stock and has a $2.00 price target.
Stephen Laszczyk has given his Hold rating due to a combination of factors that influenced the performance of iHeartMedia Inc. (IHRT). The decision to maintain a Neutral rating and lower the price target to $2.00 is resultant of the 3Q23 results. These results showed a beat to consensus expectations on Revenue, adjusted EBITDA that was inline, and a miss on Free Cash Flow. Additionally, the guidance for 4Q23 Revenue was weaker than anticipated.
Despite the positive indications from the quarter, such as Total Revenue exceeding the high end of the 3Q23 guidance and the continuous progress towards capital structure optimization, there were negatives too. The guidance for 4Q23 Revenue and Adjusted EBITDA was below consensus expectations, mainly due to an expected weaker recovery in advertising. Furthermore, investors are expected to focus on iHeartMedia’s ability to stabilize its Multiplatform performance to generate enough EBITDA and Free Cash Flow to address the $5.2B of debt due in 2026 and 2027. Consequently, the outlook for 2023+ Revenue, Adjusted EBITDA and Free Cash Flow has been reduced to reflect these projections.
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iHeartMedia (IHRT) Company Description:
iHeartMedia, Inc. engages in the provision of media and entertainment services. It operates through the following segments: Audio; Audio and Media Services; and Corporate and Other Reconciling Items. The Audio segment comprises of media and entertainment services via broadcast and digital delivery and also includes events and national syndication businesses. The Audio and Media Services segment consists of the other audio and media services, including the media representation business (Katz Media) and the provider of scheduling and broadcast software (RCS).The company was founded by L. Lowry Mays and B. J. McCombs in 1972 and is headquartered in San Antonio, TX.
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