Gabelli: A.H. Belo's 2012 Guidance Muted by Investment Spending

In a recent reseach report published by Gabelli, A.H. Belo AHC is guiding toward adjusted EBITDA of $37-41 million. Gabelli commented in the report, “Despite improving trends, the stock declined $0.53 per share to close at $5.16, reflecting lower EBITDA guidance stemming from increased investment spending and higher pension contributions. At current prices, AHC stock is trading at about 1.3x estimated 2012 EBITDA. Based on a 4x EBITDA multiple, approximately in line with recent prices paid for the New York Times' regional newspapers, we calculate a $10 per share PMV in 2012. Ongoing efforts to monetize surplus real estate could help enhance value.” Gabelli maintains its Buy rating and $11 PMV on A.H. Belo, which closed yesterday at $5.16.