‘Cheap’ Belo Stock Upgraded To ‘Buy’ By Citigroup

By: E&P Staff

Citigroup analyst Eileen Furukawa Tuesday upgraded Belo Corp. to “Buy” from “Hold,” saying the Dallas-based company’s TV properties are so undervalued the stock should appeal even to the most “anti-newspaper” investor.

Furukawa also raised her price target for Belo stock to $25 from $19.

At noon EDT Tuesday, Belo (BLC: NYSE) was trading at $21.61, up 99 cents or 4.8% on its opening.

Furukawa said Belo’s “conglomerate discount” is too much on its television business. If Belo’s 20-plus stations were valued at the same multiple as other TV companies, the corporation would be valued some 60% higher than its $2.26 billion market worth, the analyst suggested.

At its current stock price, Furukawa said, Belo is so cheap a buyer would effectively be getting for free its newspaper division, which publishes The Dallas Morning News and three other dailies.

RSS
Follow by Email
Facebook
Facebook
Twitter
Visit Us
LinkedIn

Leave a Reply

Your email address will not be published. Required fields are marked *