Barrington analyst Patrick Sholl has maintained their neutral stance on GTN stock, giving a Hold rating on March 3.
Patrick Sholl has given his Hold rating due to a combination of factors influencing Gray Television’s financial outlook. The company’s fourth-quarter revenues were largely in line with expectations, with political revenues aligning with prior guidance. However, the company’s guidance for core advertising trends showed more softness than anticipated, indicating potential challenges in profitability for the upcoming quarters.
Despite these challenges, Gray Television is making progress in reducing its debt, having decreased its outstanding debt by $520 million in 2024. The company’s ability to generate substantial cash flow, particularly in political years, and its strategic debt repurchases below par are positive signs. Nonetheless, ongoing issues such as linear churn, slow growth in retransmission revenue, and high programming costs continue to exert pressure on the company’s leverage. These mixed factors contribute to the Hold rating, reflecting a balanced view of the company’s strengths and challenges.
Sholl covers the Communication Services sector, focusing on stocks such as Gray Television, IMAX, and Marcus. According to TipRanks, Sholl has an average return of -2.7% and a 40.54% success rate on recommended stocks.
In another report released on March 3, Wells Fargo also upgraded the stock to a Hold with a $4.00 price target.