iHeartMedia upgraded to Neutral at BofA on debt deal clarity

As previously reported, BofA upgraded iHeartMedia (IHRT) to Neutral from Underperform with a price target of $3, up from $1. Given the recent transaction support agreement related to iHeartMedia’s debt, alongside better than expected calendar year 2025 guidance, the firm views the risk/reward as more balanced while awaiting more concrete signs of a true inflection in the multi-platform group and Broadcast radio to get more constructive on shares. The firm acknowledges “the likely worst-case scenario has been removed in the near term” and argues the company now has a longer runway to continue to grow their digital business, manage their cost base, revitalize their traditional broadcast business and continue to de-lever.