Update shared on27 Aug 2025
Fair value Increased 2.81%Analysts raised TEGNA's price target to $21.33, citing strong regulatory prospects and significant synergy benefits from Nexstar’s $22-per-share acquisition offer, which meaningfully enhances scale and political ad exposure.
Analyst Commentary
- The Nexstar acquisition of Tegna at $22 per share in cash is viewed as highly favorable, driven by a supportive regulatory environment.
- The combined entity is expected to reach approximately 80% of U.S. TV households, significantly enhancing scale and competitive positioning.
- Synergies from the deal are projected at over 35% of Tegna's adjusted EBITDA, with the potential for upside beyond the initial $300M synergy estimate.
- The acquisition boosts the buyer’s exposure to politically influential swing states, enhancing expected political advertising revenues.
- Potential regulatory requirements for divestitures introduce some uncertainty, but the overall financial and strategic merits are seen as compelling.
What's in the News
- Nexstar Media Group has agreed to acquire TEGNA for $3.7 billion ($22 per share in cash), with deal financing supported by major banks; the boards have unanimously approved the transaction, which is targeted to close in the second half of 2026 (Key Developments).
- Sinclair Broadcast Group has made a competing offer to merge its broadcast TV business with TEGNA, valuing TEGNA at $25–$30 per share, but high combined debt loads are seen as a potential obstacle for deal completion (WSJ/Key Developments).
- Earlier in August, reports surfaced that Nexstar was in advanced talks to acquire TEGNA, combining two major local broadcaster networks, a move confirmed by subsequent official transaction announcements (WSJ/Key Developments).
- TEGNA completed its previously authorized $274.87 million share repurchase but did not buy back any shares in the latest quarter; the company also issued Q3 2025 guidance for a revenue decline of 18% to 20% (Key Developments).
- TEGNA is significantly expanding live and on-demand local news coverage across 50+ markets, with viewership gains in early trials and a full rollout expected by fall 2025 (Key Developments).
Valuation Changes
Summary of Valuation Changes for TEGNA
- The Consensus Analyst Price Target has risen slightly from $20.75 to $21.33.
- The Future P/E for TEGNA has risen slightly from 10.53x to 10.81x.
- The Discount Rate for TEGNA remained effectively unchanged, moving only marginally from 8.34% to 8.26%.
Disclaimer
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