Strong operating results. The company reported full year 2021 revenue of $2.413 billion, 2.2% higher than consensus estimates. Adj. EBITDA was especially strong for the year at $739 million, which beat consensus by 7.4%.Auto set for a comeback. Auto was 17% of core advertising revenue in 2021 compared with 21% of core advertising revenue in 2020. In Q3 2022, management expects auto to begin recovering but it may not be fully recovered until 2023. Given the emergence of categories like sports betting, we believe the compounding effects of auto recovering could drive meaningful revenue momentum.Revising estimates. Given the company’s acquisition of Meredith in December of 2021, we are updating our full year 2022 and 2023 forecasts. Our estimates call for revenue of $3.570 billion in 2022 and $3.397 billion in 2023. We are estimating adj. EBITDA of $1.323 billion and $1.003 billion in 2022 and 2023, respectively.Financial Improvement. As of year-end, cash totaled $189 million with total debt was $6.75 billion, bringing the leverage ratio to 5.47 times. Management's priority is to reduce the leverage ratio below 4 times in a short period of time. The strong cash flow has allowed the company to return capital to shareholders, repurchasing 1.5 million common shares at an average price of $19.98 in Q4.Maintaining Outperform rating. Near current levels, the GTN shares trade at 6.7 times Enterprise Value to our 2022 Adj. EBITDA estimate, a discount to peers. We are reiterating our Outperform rating and our $30 price target, which reflects a 7.1 times target EV/2022 EBITDA multiple. Read More >>