SSP - Stephens sees double-digit upside in broadcasting names as sector faces easy comps
Adjusting its models for local-broadcasting stocks as earnings reports arrive leads Stephens to the view that valuations are still attractive in the sector, with double-digit upside for a few of its covered names. The sector offers a strong reopening play with a "built-in" second-half boost, analyst Kyle Evans says, for three reasons: Nonpolitical core ad revenue is trending "flattish" already, vs. largely uninfected comparisons; the second quarter of this year is a particularly easy comp, given a 35% core decline for the group in Q2 of 2020; and the second half of this year will benefit from a "double whammy on the comp side of a pandemic/recession plus record high political displacement." And while separating the cyclical from the secular will be a tough task this year, core headlines will "almost surely" read positively - with businesses set to reopen, sports returning in a more meaningful way (with NCAA basketball
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Stephens sees double-digit upside in broadcasting names as sector faces easy comps