TEGNA (TGNA – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Steven Cahall from Wells Fargo maintained a Hold rating on the stock and has a $16.00 price target.
Steven Cahall’s rating is based on a nuanced view of TEGNA’s financial prospects, noting both positive and negative aspects of the company’s performance. Despite facing weaker retransmission revenues, the company has managed to maintain stable net income. Additionally, while advertising sales show pressure, the company’s two-year free cash flow (FCF) and capital allocation strategies have remained consistent. Cahall acknowledges a potential risk in cord-cutting and shifting consumer preferences, but he also recognizes TEGNA’s efforts to manage these impacts effectively.
The Hold rating reflects Cahall’s assessment of TEGNA’s balanced financial position—where the company’s lower retransmission revenues are somewhat offset by cost reductions and stable FCF guidance. The report indicates that while TEGNA’s near-term EBITDA guidance is down, the longer-term FCF outlook is positive, supported by a strong balance sheet and strategic capital allocation, including share repurchases and potential mergers and acquisitions. However, Cahall remains cautious, suggesting that TEGNA’s growth trajectory needs to improve before a more bullish stance can be justified, keeping the target price unchanged at $16. The Hold rating is thus a reflection of this equilibrium between the company’s solid financial management and the need for stronger growth signals.
TGNA’s price has also changed slightly for the past six months – from $15.060 to $14.680, which is a -2.52% drop .
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
TEGNA (TGNA) Company Description:
TEGNA, Inc. engages in the provision of media services. It offers TEGNA Marketing Solutions, a one-stop shop that helps businesses through a suite of services and solutions that reach consumers across television, email, social and over-the-top (OTT) platforms, including Premion, TEGNA’s OTT advertising service. The company was founded by Frank E. Gannett in 1906 and is headquartered in Tysons, VA.
