Melissa Kopka
Shares of TEGNA Inc. (NYSE:TGNA) have been a solid performer over the past year, gaining 14%. Much of these gains happened after the 2024 election, amid hopes for looser station ownership rules, which could enable a round of M&A. I
TEGNA: Cost Controls And Potential Dealmaking Make Shares Attractive
Summary
- TEGNA remains a buy despite recent underperformance, supported by solid cash flow, cost cuts, and potential M&A upside as regulatory changes loom.
- Political and advertising revenue headwinds are cyclical, so I value TEGNA on multi-year free cash flow, not single-year results.
- Cost discipline, sports content deals, and a strong balance sheet position TEGNA to weather industry pressures and return capital to shareholders.
- With a 16% normalized free cash flow yield and possible M&A catalysts, I see double-digit returns and would add TGNA shares on weakness.
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