And while the new deal price moved Meredith's stock (up 7.1% that day), Citi still likes the stock for five reasons: "(1) shareholders will now receive a higher payout for the sale of the LMG assets, (2) the firm will have an improved leverage profile following the sale of LMG, (3) following the sale, we believe there are grounds for a reinstated dividend, (4) management has made solid progress with its digital pivot, and (5) the pro forma FCF multiple is not demanding at current levels."
Along with the target boost, it's increasing the target EV/EBITDA multiple to 5.5x from 5.0x due to ongoing digital progress.