"While the deal is expected to close in 3Q, RLOC will remain standalone until the expiration of GCI's agreement w/ TGNA (mid-2017). GCI's ongoing M&A should continue to drive the narrative; however, we remain cautious on the core business," wrote Jefferies.
Gannett's financials will show nearly $1 billion digital revenue after the deal is closed, which represents almost one-third of the total sales. According to the analysts, while the core publishing business will maintain its dominance as a key focus for investors, digital will be more and more visible and trigger growth of the company.
The analysts kept their Hold rating unchanged. A current $17 PT assumes 6.1x F16E EBITDA.
At time of writing, Gannett traded down 1.62 percent on the day at $13.40.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.