Analyst Jessica Reif Ehrlich of Bank of America Securities reiterated a Hold rating on iHeartMedia, retaining the price target of $1.90.
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Jessica Reif Ehrlich’s rating is based on iHeartMedia’s recent financial performance and the current macroeconomic environment. The company’s second-quarter results exceeded expectations in terms of revenue and EBITDA, with podcasting revenue showing significant growth. However, the overall financial performance was mixed, with free cash flow being negative due to timing issues with receivables and interest payments.
Despite the revenue outperformance, the future outlook remains uncertain due to macroeconomic challenges. The guidance for the third quarter suggests a decline in revenue, although certain segments like Digital Audio Group are expected to grow. The company’s ability to achieve its full-year targets is contingent on improvements in the macroeconomic landscape. As a result, Ehrlich maintains a Hold rating, viewing the stock as fairly valued at its current price, while awaiting clearer signs of recovery in key business segments.
Reif Ehrlich covers the Communication Services sector, focusing on stocks such as Warner Bros, iHeartMedia, and Fox. According to TipRanks, Reif Ehrlich has an average return of 6.9% and a 52.62% success rate on recommended stocks.
In another report released on August 6, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $1.50 price target.