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a good operator of television broadcast stations (TVL, rated BUY)
Today's stock selection: TVL
Reference:
Recommendation from S&P Analyst: : ERIK KOLB Broadcasting and Entertainment
Although 2008 will benefit from significant political and Olympics revenues, we believe
a long-term structural shift of advertising revenue from television to other media will continue. LIN TV has proven to be a good operator of television broadcast stations in our view, with its emphasis on having two stations in a specific market. Although the company plans t increase efforts in 2008 and 2009 to
expand its new digital media, it is unclea if and when its revenue stream will see
more than a modest contribution. We project 2008 earnings of $0.76 a share, up from $0.57 in 2007.
Our 12-month target price of $13 is a blend of our historical and peer analyses,
both of which apply a mean enterprise value ratio of 8.6 times our 2008 EBITDA estimate of $145 million. Risks to our recommendation and target price include weaker-thanexpected advertising spending.
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