Why Mario Gabelli Sees 50% Upside In Sinclair Broadcast Group

The media company Sinclair Broadcast Group Inc SBGI has 50% upside over the next two years, GAMCO Investors chairman and CEO Mario Gabelli said Monday on CNBC's "Power Lunch."

Cash flow from broadcasting and monetization of the regional sports networks the company acquired will be the drivers behind the 50% upside for the stock over the next two years, Gabelli told CNBC.

Broadcasting is slowly recovering, but Gabelli said the recovery will accelerate in the coming years. 

The spring of 2022 will bring another midterm election, and Gabelli said political advertising during that time will increase revenue for broadcasters like Sinclair. 

Related Link: Fraunhofer and Sinclair to Collaborate Towards Integrating Digital Radio Mondiale Framework into the ATSC 3.0 Digital TV Platform

SBGI Price Action: Sinclair Broadcast Group was up 3.09% at $31.01 at last check Monday. 

Image by Photo Mix from Pixabay.