On Wednesday, Guggenheim took a revised stance on iHeartMedia (NASDAQ:IHRT), adjusting the stock's price target down to $3 from the previous $5, while still affirming a Buy rating on the shares. The adjustment follows the company's first-quarter 2024 earnings release, which reported a slight revenue decline of 1.5%, amounting to $799 million.
This figure narrowly missed the company's guidance, which ranged from flat to a 2% decrease. Adjusted EBITDA for the quarter reached $105 million, aligning with the guided range of $100 million to $110 million, yet falling slightly short of Guggenheim's forecast of $106 million.
iHeartMedia also provided guidance for the second quarter, anticipating revenue to be roughly flat, which is consistent with Guggenheim's expectations. The adjusted EBITDA for the upcoming quarter is projected to be between $140 million and $160 million, with Guggenheim's estimate on the higher end at $158 million.
Looking ahead to the full year, Guggenheim has set revenue and adjusted EBITDA estimates for iHeartMedia at $3.89 billion and $781 million, respectively. The revised price target of $3 reflects the latest financial figures and forecasts provided by the company, indicating a more conservative valuation than previously estimated.
Despite the lowered stock price target, the Buy rating suggests that Guggenheim sees potential value in iHeartMedia's stock, even as they recalibrate expectations based on the company's recent performance and near-term outlook. The new stock target price represents Guggenheim's updated assessment of the stock's future market position following the first-quarter results and second-quarter projections.
InvestingPro Insights
In light of Guggenheim's recent reevaluation of iHeartMedia (NASDAQ:IHRT), current data from InvestingPro provides additional context for investors considering the stock. Real-time metrics indicate that iHeartMedia has a market capitalization of $173.81 million, reflecting its standing in the market post-earnings release. The company's revenue for the last twelve months as of Q1 2024 stands at $3.74 billion, with a slight decline of 3.64% indicating the challenges faced in generating growth.
InvestingPro Tips suggest that iHeartMedia's stock is currently in oversold territory according to the RSI, and it's trading near its 52-week low, which might attract investors looking for potential value buys.
The stock's high price volatility is also noteworthy, as it can imply greater risk for traders. It's important to note that analysts do not expect the company to be profitable this year, which aligns with the negative P/E ratio of -0.19.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights, including the fact that iHeartMedia's liquid assets exceed its short-term obligations, providing some financial stability. Still, the stock has experienced significant price drops over various timeframes, including a 41.67% decrease over the past week.
To explore further and gain access to all 13 InvestingPro Tips for iHeartMedia, visit https://www.investing.com/pro/IHRT. Use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a more in-depth investment analysis and data-driven decision-making tools.
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