The company held an investor day on October 3, where management covered its current state of operations and growth prospects.
Reilly noted the company provided more transparency into some of its subsidiaries, including the Tennis Channel and Compulse 360.
The analyst said Sinclair expects record midterm political advertising to offset any weakness in core advertising during the year and forecasts 2024 to be another record year for political advertising.
Reilly cited roughly 50% of the company's distribution contracts are up for renewal in 2023 and an additional 40% are up for renewal in 2024.
The company sees this as an opportunity to increase the consideration received from its MVPD (Multichannel Video Programming Distributor) customers, as the broadcast fees it currently receives are undervalued relative to the ratings that the programs deliver.
He believes Sinclair will acquire programming rights for Tennis in India, likely leading to significantly more viewership going forward.
The company's SaaS marketing platform, Compulse 360, is expected to generate over $100 million this year in gross billings and continues to ride the trend of digital advertising spend within the U.S.
Overall, the analyst is bullish on the company's growth prospects and believes its shares are materially mis-priced at current levels.
Price Action: SBGI shares are trading higher by 1.50% at $19.00 on the last check Wednesday.
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