iHeartMedia (IHRT – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Stephen Laszczyk from Goldman Sachs maintained a Hold rating on the stock and has a $2.00 price target.
Stephen Laszczyk has given his Hold rating due to a combination of factors affecting iHeartMedia’s recent financial performance and forward-looking expectations. The company reported a mixed bag in its fourth quarter of 2023, with revenues exceeding consensus expectations, but underperforming in Adjusted EBITDA and Free Cash Flow. Additionally, the first quarter of 2024 guidance was less robust than anticipated. Despite this, the management team expressed a positive outlook during the earnings call regarding the recovery of the advertising market, noting an uptick in advertising momentum as the year progresses.
The cautious optimism is tempered by the need for revisions to the financial forecast for iHeartMedia. Laszczyk and his team at Goldman Sachs, while acknowledging the early signs of recovery in the advertising sector, have adjusted their projections for the company’s 2024 Revenue, EBITDA, and Free Cash Flow to account for a slower-than-expected recovery pace. As a result, Laszczyk has set a price target based on a sum-of-the-parts framework looking into 2025 estimated EV/Adjusted EBITDA, reflecting a conservative yet hopeful stance on iHeartMedia’s financial trajectory.
According to TipRanks, Laszczyk is a 3-star analyst with an average return of 3.3% and a 65.00% success rate. Laszczyk covers the Communication Services sector, focusing on stocks such as Cinemark Holdings, IMAX, and Live Nation Entertainment.
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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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