trending Market Intelligence /marketintelligence/en/news-insights/trending/SkvIXwhyW1S-NJeHwEJPaw2 content esgSubNav
In This List

Evercore analyst lifts TEGNA to 'outperform' after station deal announced

Blog

Insight Weekly: Banks brace for recession; Europe PE deal values soar; US solar imports rebound

Video

According to Market Intelligence, December 2022

Blog

Insight Weekly: Layoffs swell; energy efficiency PE deals defy downturn; 2023 global risk themes

Podcast

MediaTalk | Episode 30: US retailers prep for weaker online sales, holiday spending demand


Evercore analyst lifts TEGNA to 'outperform' after station deal announced

Evercore ISI analyst David Joyce raised TEGNA Inc.'s rating to "outperform" from "in line," following news that TEGNA will acquire 11 TV stations in eight markets from Nexstar Media Group Inc. for $740 million, TheFly.com reported March 25.

Joyce wrote that the market is "misinterpreting the price" TEGNA is paying for the stations. The analyst calculated TEGNA is paying 6.7x EBITDA after retransmission rate resets, other synergies and tax benefits, making the acquisition about 11% accretive. Shares of TEGNA fell 4.6% between March 19, the day before the deal announcement, and March 22.

Nexstar is selling television stations following its acquisition of Tribune Media Co.

Joyce also set an $18 price target on TEGNA's stock, up from $16. The stock opened trading on the NYSE on March 25 at $14.12 per share.