- Gray Television has been growing substantially over the last couple of years, for the large part driven by acquisitions.
- Shares have also provided attractive returns. Year-to-Date 2020, however, share prices have declined in spite of a recovery that has already followed the big pandemic related plunge in last March.
- There's a top-line challenge ahead. 2021 comes with uncertainty about the advertising revenue, which is still the key source of revenue for the company.
- There are also potential benefits from recovery of non-political ad revenue to pre-pandemic levels, unlocked synergies with acquired companies and growing retransmission revenues.
- If Gray Television can indeed benefit while focusing on cost efficient operations, I believe there's a substantial upside for the shares. The current valuation is attractive and I'm cautiously bullish.
For further details see:
Gray Television Shares Can Gain More Through Cost Efficiency Focus