MDP - Meredith has 26% more upside after revised TV station deal - Citi

Drew Angerer/Getty Images News Citi is boosting its target price on Meredith (MDP), accounting for some deal dynamics around the sell-off of its Local Media Group. The new target is $51, up from $41, after incorporating the revised proposal from Gray Television (GTN) for Meredith's TV station assets. That target implies 26% upside. And while the new deal price moved Meredith's stock (up 7.1% that day), Citi still likes the stock for five reasons: "(1) shareholders will now receive a higher payout for the sale of the LMG assets, (2) the firm will have an improved leverage profile following the sale of LMG, (3) following the sale, we believe there are grounds for a reinstated dividend, (4) management has made solid progress with its digital pivot, and (5) the pro forma FCF multiple is not demanding at current levels." Along with the target boost, it's increasing the target EV/EBITDA multiple

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Meredith has 26% more upside after revised TV station deal - Citi