Why This Analyst Feels Sinclair Is A 'Diamond In The Rough'

While Sinclair Broadcast Group Inc SBGI is a diversified media company, providing high-quality content via its local television stations, sports networks and digital platforms, the market seems to be valuing it as a traditional television broadcaster, according to EF Hutton.

The Sinclair Analyst: Edward Reilly initiated coverage of Sinclair with a Buy rating and a price target of $41.

The Sinclair Thesis: The company has “several valuable assets” that seem undervalued by investors, including “its future DTC business, NPV of net operating losses, Tennis Channel, Compulse 360 SaaS platform, and an investment portfolio that has compounded at 20% per year since 2014,” Reilly said in the initiation note.

“Sinclair is launching a direct-to-consumer sports streaming product for the teams it currently has local digital rights to stream in 2022,” the analyst wrote.

Also Read: Top 10 Most Valuable MLB Teams And 2 Stocks To Watch

Through its partnership, the company has integrated Bally’s sports betting technology platform with its sports content, Reilly mentioned. “We believe that this will lead to an enhanced viewing experience and increased engagement from viewers, which should translate into stronger demand from advertisers,” he added.

“Sinclair has the rights to stream games from 34 professional sports teams,” the analyst stated.

SGBI Price Action: Shares of Sinclair had declined by 1.08% to $22.85 at the time of publication Tuesday, according to Benzinga Pro.