Gilford Has Buy On Entercom Comm. (ETM)
Gilford Securities has a Buy rating and a $10.75 price target on shares of Entercom Comm. (NYSE: ETM).
In a note to clients, Gilford writes, "Today, it was announced that one public radio group bought out its partners in a private radio group at what we estimate is 9.6x ‘10E EBITDA and 9.0x ‘11E EBITDA. We utilize EBITDA because in this case the public buyer was already running the private stations, so no corp. overhead savings. We used 4% rev. growth and 43% EBITDA margins for the large market radio station group. ETM, at 9.0x ‘11E would be worth $17 per share. We feel ETM are superior operators, with better station clusters, than the groups in this deal."
Shares of ETM gained 97 cents yesterday to close at $10.77, a gain of 9.9%.
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