Wins significant advertising support. Cumulus Media struck a partnership with WynnBET, a mobile sports betting app from Wynn Resorts, becoming one of the company's largest advertisers. The value of the agreement was undisclosed, but is expected to include both cash, (the majority of the deal), and stock in WynnBET. The partnership is expected to support multiple platforms at the company including the Westwood One Networks and its Digital and Local Radio brands. Inside the partnership's details. The deal is a significant win for Cumulus given that Wynn was not a significant advertiser at the company. Furthermore, this is a non-exclusive agreement and management indicated that there is significant advertising inventory for additional relationships, including other sports betting companies. In addition, the partnership is expected to be a multi-year agreement, which will grow over time. We expect that the financial impact will largely follow the sports season, particularly in the Q3, Q4 and Q1 quarters.What to expect. Cumulus has a powerful reach and a number of sports content brands, including football, pre-game and play by play, with plans to create additional branded content, to drive users to the WynnBET app. The company touts that it has 250 million listeners each month. Favorable advertising trends. The company is likely to exceed our conservative Q2 revenue ($221.2 million) and cash flow *($24.6 million Adj. EBITDA) expectations in upcoming earnings and the recent partnership is expected to be accretive to our favorable advertising recovery outlook. We anticipate that the company will provide an updated outlook in its upcoming Q2 investor conference call on August 4 at 8:30am EDT. The dial in number is 404.975.4839, access code 515804. Compelling stock valuation. We believe that positive upside cash flow surprises and aggressive debt reduction will be the key catalysts toward our recently upwardly revised price target of $17. Near current levels, the CMLS shares trade at an attractive 6.1 times our 2022 adj. EBITDA estimate. Read More >>