Wednesday, March 02, 2022

Gray Television (GTN)
A Cash Flow Machine

Gray Television, Inc. operates as a television broadcast company in the United States. As of April 6, 2010, it operated 36 television stations in 30 markets, including 17 affiliated with CBS Inc.; 10 affiliated with the National Broadcasting Company, Inc.; 8 affiliated with the American Broadcasting Company (ABC); and 1 affiliated with FOX Entertainment Group, Inc. (FOX). The company also operated 39 digital second channels comprising 1 affiliated with ABC, 4 affiliated with FOX, 7 affiliated with CW Network, LLC, 18 affiliated with Twentieth Television, Inc., 2 affiliated with Universal Sports Network, and 7 local news/weather channels. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Strong operating results. The company reported full year 2021 revenue of $2.413 billion, 2.2% higher than consensus estimates. Adj. EBITDA was especially strong for the year at $739 million, which beat consensus by 7.4%.

Auto set for a comeback.  Auto was 17% of core advertising revenue in 2021 compared with 21% of core advertising revenue in 2020. In Q3 2022, management expects auto to begin recovering but it may not be fully recovered until 2023. Given the emergence of categories like sports betting, we believe the compounding effects of auto recovering could drive meaningful revenue momentum ...

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.