MDP - Analysts like Meredith/Gray deal for local TV stations

In reviewing Gray Television's (GTN -1.2%) $2.7B deal to acquire Meredith's (MDP +0.8%) local television stations, Stephens sees it as a positive for both companies. Gray paid a fair price for the assets, the firm says, while Meredith will be able to better focus on its digital opportunity with "significantly" lower leverage along the way. It is maintaining an Equal Weight rating on Meredith and raising its price target to $36 (vs. today's $35.51 quote). Benchmark also likes the deal for Meredith, approving of a tax-efficient path toward expanding the company's digital multiple. It's reiterating a Buy rating and raising its price target to $43, implying 21% upside. The Street is Neutral on Meredith, while Seeking Alpha authors are Bullish overall. The stock has a Quant Rating of Bullish.

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Analysts like Meredith/Gray deal for local TV stations