Barrington analyst Patrick Sholl has reiterated their neutral stance on IHRT stock, giving a Hold rating on September 11.
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Patrick Sholl has given his Hold rating due to a combination of factors influencing iHeartMedia’s current market position. The company benefits from its extensive scale as the largest radio broadcaster, which allows it to leverage its reach for marketing its podcast operations and other digital ventures. This scale provides a significant amount of attractive ad inventory, which is beneficial for both local and national advertising clients. Despite the challenging advertising environment caused by economic uncertainties, iHeartMedia’s diverse advertiser base and the potential recovery in the radio ad market are positive indicators.
Another factor contributing to the Hold rating is the company’s efforts in cost reduction and operational efficiencies, particularly within its MultiPlatform Group. While revenue in this segment has been soft, the focus on cost savings and digital growth has resulted in an increase in EBITDA year-over-year. The company’s strategy to stabilize and improve broadcast ad revenue, along with its diversification into digital and podcasting, supports its growth potential. However, the aggressive risk profile and the need for further stabilization in revenue streams justify the Hold rating at this time.
In another report released on September 11, Goldman Sachs also maintained a Hold rating on the stock with a $1.25 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of IHRT in relation to earlier this year.