U.S. markets open in 9 hours 20 minutes
  • S&P Futures

    3,967.50
    +5.50 (+0.14%)
     
  • Dow Futures

    33,897.00
    +40.00 (+0.12%)
     
  • Nasdaq Futures

    11,540.00
    +15.25 (+0.13%)
     
  • Russell 2000 Futures

    1,841.20
    +3.40 (+0.18%)
     
  • Crude Oil

    79.09
    +0.89 (+1.14%)
     
  • Gold

    1,767.70
    +4.00 (+0.23%)
     
  • Silver

    21.27
    +0.07 (+0.33%)
     
  • EUR/USD

    1.0363
    +0.0028 (+0.27%)
     
  • 10-Yr Bond

    3.7480
    +0.0450 (+1.22%)
     
  • Vix

    21.89
    -0.32 (-1.44%)
     
  • GBP/USD

    1.1991
    +0.0041 (+0.34%)
     
  • USD/JPY

    138.5660
    -0.0680 (-0.05%)
     
  • BTC-USD

    16,874.61
    +401.06 (+2.43%)
     
  • CMC Crypto 200

    400.76
    +12.04 (+3.10%)
     
  • FTSE 100

    7,512.00
    +37.98 (+0.51%)
     
  • Nikkei 225

    27,922.84
    -105.00 (-0.37%)
     

Sinclair Broadcast's Growth Prospects Prompts 25% Price Target Hike By This Analyst

  • EF Hutton analyst Edward Reilly reiterated a Buy rating on Sinclair Broadcast Group Inc (NASDAQ: SBGI) and raised the price target to $50 from $40.

  • 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.

Latest Ratings for SBGI

Date

Firm

Action

From

To

Feb 2022

Benchmark

Maintains

Buy

Dec 2020

Deutsche Bank

Reinstates

Hold

Dec 2020

Wells Fargo

Upgrades

Underweight

Equal-Weight

View More Analyst Ratings for SBGI

View the Latest Analyst Ratings

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.