In a report released today, Matthew Harrigan from Benchmark Co. maintained a Buy rating on Grupo Televisa, S.A.B. (TV – Research Report), with a price target of $7.00.
Matthew Harrigan has given his Buy rating due to a combination of factors that highlight Grupo Televisa’s potential despite current challenges. The company maintains a global leadership position in Spanish language television through its TelevisaUnivision joint venture, which is a significant asset undervalued by the market. Additionally, Televisa’s ability to generate substantial free cash flow from its cable and satellite operations in Mexico supports its financial stability.
Despite uncertainties such as new tariff implementations and peso weakness, Harrigan notes that the company’s balance sheet concerns may be overstated. The anticipated decline in net debt ratios by 2025 and the lack of significant debt maturities until 2027 provide a buffer against economic uncertainties. Furthermore, the company’s revenue exposure to the U.S. market, which accounts for a significant portion of its advertising and revenue streams, offers a hedge against peso depreciation, potentially benefiting margins.