J.P. Morgan Maintains Overweight Rating On SSP
J.P. Morgan has published a research report on E.W. Scripps (NYSE: SSP) detailing some of its long-term growth possibilities.
In the report, J.P. Morgan said that it is “looking for ongoing modest declines in newspaper revenues, down low-single digits this year, with some margin compression as Scripps contends with rising newsprint pricing, investment spending and other compensation related increases.”
“While the company has come under some criticism for not buying back any stock in Q4, 10 given its $205 million of cash on the balance sheet (nearly 40% of SSP's market cap) and no debt, we believe management will be more active in the market this year,” J.P. Morgan writes.
“With a very conservative stance on acquisitions and an improving economy, we believe management will have limited alternatives to invest their cash and likely focus on returning it to shareholders.”
J.P. Morgan maintains its Overweight rating on shares of E.W. Scripps, which currently trades at $9.48.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.