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Gray Television Inc. (GTN)
Why We Are Raising Our Price Target
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.
Refer to the full report for the price target, fundamental analysis, and rating.
Exceeds Q4 expectations. Q4 revenues of $579.0 million was better than our $553.0 million estimate on the strength of Political advertising ($35.0 million versus our $26.0 million estimate). Cash flow was $215.0 million, better than our $193.0 million estimate.
Political is a barn-burner. Guidance for high margin, Political advertising for the first quarter of $35 mil to $40 mil is better than our $30 mil estimate. The company raised its full year Political guidance to a range of $250 mil to $275 mil, which, we believe, may prove to be...
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.