TV Grupo Televisa SAB ADR

Grupo Televisa (NYSE:TV) is seeing potential upside due to its 45% ownership in TelevisaUnivision, which has shown impressive growth with its VIX streaming service turning profitable in 2024. Additionally, a recent multi-year distribution agreement between TelevisaUnivision and YouTube TV is expected to further boost its prospects. BofA Securities raised its price target for Grupo Televisa to $3.30, citing enhanced cash generation, though noting risks such as declining Sky user numbers and competitive challenges.

This article identifies Grupo Televisa, S.A.B. (NYSE:TV) as one of the best telecom stocks for investment. BofA Securities maintained a Neutral rating, boosting its price target due to enhanced cash generation and strong growth prospects from its TelevisaUnivision streaming service, despite challenges like declining Sky users and competition. The company, a major Mexican telecommunications and media firm, recently secured a multi-year distribution agreement with YouTube TV.

Grupo Televisa S.A. (NYSE:TV) has received a consensus "Hold" recommendation from six brokerage firms, with an average 12-month price target of $5.07. Despite recent analyst upgrades from firms like Benchmark and JPMorgan, the company reported a weak quarter, missing EPS expectations and showing negative profitability. Institutional investors hold 55.77% of the stock, with significant position increases by JPMorgan Chase & Co. and Acadian Asset Management LLC.

This article reports that the price target for Grupo Televisa, SAB (GRPFF) has been decreased by 14.16% to 0.68.

Grupo Televisa's use of debt is analyzed, noting that while its net debt to EBITDA ratio is acceptable, its interest cover is very low, indicating high leverage. The company's significant liabilities outweigh its cash and near-term receivables, posing a considerable risk to the business, especially given its 74% decline in EBIT over the last year. However, its strong free cash flow generation offers a glimmer of encouragement.

Grupo Televisa (BMV:TLEVISACPO) carries significant debt, with net debt of Mex$49.6b. The company's liabilities of Mex$67.4b outweigh its cash and near-term receivables, and its EBIT was down 74% over the last year, raising concerns about its ability to service debt. While its free cash flow conversion from EBIT is strong, the overall balance sheet presents a notable risk to the business.