TEGNA’s Renewed Denver Sports Partnership: Exploring the Stock’s Current Valuation Opportunity

Kroenke Sports & Entertainment has renewed its broadcast partnership with TEGNA (TGNA), allowing 40 Denver Nuggets and Colorado Avalanche games to be broadcast for free to nearly 3.5 million residents in the Denver metro area this season.

See our latest analysis for TEGNA.

TEGNA’s renewed deal with Kroenke Sports & Entertainment comes at a time when the company’s share price has shown little movement in the short term. However, it delivered a 1-year total shareholder return of 0.37%, reflecting muted but steady progress as management pursues audience expansion and regional growth. While recent news coverage has been dominated by the free sports broadcast extension in Denver, the market seems to be taking a wait-and-see approach and focusing on the company’s ability to convert broader viewership gains into long-term value.

If expanded local sports coverage caught your interest, consider exploring opportunities beyond media and check out fast growing stocks with high insider ownership

Yet with TEGNA’s modest share gains and steady fundamentals, the question remains: is the stock a bargain for value-seeking investors, or has the market already accounted for any upside from increased local sports broadcasting exposure?

Most Popular Narrative: 4.8% Undervalued

With TEGNA's most-followed narrative assigning a fair value of $21.33, just above the last close at $20.30, attention is turning to what could drive a re-rating from here.

Ongoing changes in advertiser behavior, specifically, the migration of ad budgets away from linear TV to digital and social platforms, are anticipated to reduce the total addressable market for traditional broadcast ads. This could potentially lead to sustained net margin pressure.

Read the complete narrative.

Think TEGNA can outsmart the digital ad exodus? The core value hinges on how quickly new revenue streams can ramp up. The real surprise is buried in how analysts expect margins and earnings to shift in the coming years. Ready to uncover the forecasts shaping this narrative's fair price?

Result: Fair Value of $21.33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, catalysts such as rapid digital expansion or unexpected growth in local news engagement could offset long-term declines and surprise the market’s expectations.

Find out about the key risks to this TEGNA narrative.

Build Your Own TEGNA Narrative

Prefer to chart your own course and challenge these perspectives? It only takes a few minutes to analyze the facts yourself and craft a story that reflects your view. Do it your way

A great starting point for your TEGNA research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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