SSP - Local broadcasters jump as Wells Fargo notes Tegna results show better fundamentals

Tegna (TGNA) is up 7.9% after its preliminary fourth-quarter results indicated above-consensus revenues - based not only on political ads, but also increasing subscription revenue. Those results offer some insight into all local broadcast companies, Wells Fargo says, pointing to the prospect of improved fundamentals. “While every broadcaster is a bit different, we expect plenty of read-across to the peers,” analyst Steven Cahall writes. That means gains for sector peers: Nexstar Media Group (NXST) +3.4%; Sinclair Broadcast Group (SBGI) +6.7%; E.W. Scripps (SSP) +6.3%; Meredith (MDP) +4.5%; Gray Television (GTN) +3.2%. The environment looks better for Tegna and peers, Cahall notes, pointing to "improving core ads, stronger balance sheets and the possibility of a favorable ruling for in-market ownership."

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Local broadcasters jump as Wells Fargo notes Tegna results show better fundamentals