Barrington analyst James Goss has reiterated their neutral stance on IHRT stock, giving a Hold rating today.
James Goss has given his Hold rating due to a combination of factors concerning iHeartMedia’s financial performance and market positioning. The softer than expected guidance on EBITDA, attributable to the timing of a significant event, has led to a disappointing projection and a negative market response. Despite this, the expectation for an improvement in profitability in the latter half of the year remains, bolstered by potential political revenue and growth in podcast income. Additionally, the variability in expense contribution from digital revenue growth, as opposed to traditional radio advertising, suggests a more complex financial landscape for the company.
The continued decline in broadcast advertising revenue, despite the high reach of radio, underscores the challenges within the Multiplatform Audio Group. However, notable revenue contributions from political advertising and an improvement in the purchasing process for advertisers may provide support. The Digital Audio Group’s performance, particularly in podcasting, stands as a growth leader, with positive industry trends and a strong company position in the market. Goss’s rating acknowledges iHeartMedia’s strategic efforts to diversify its revenue streams and manage its debt, amidst a difficult economic environment, indicating a cautious but not pessimistic outlook for the stock.
In another report released today, Goldman Sachs also maintained a Hold rating on the stock with a $1.00 price target.
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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.
