Companies in the Services sector have received a lot of coverage today as analysts weigh in on Sinclair Broadcast (SBGI) and Hoegh LNG Partners (HMLP).
Sinclair Broadcast (SBGI)
In a report released yesterday, Zachary Silver from B.Riley FBR maintained a Hold rating on Sinclair Broadcast, with a price target of $38. The company’s shares opened today at $34.78, close to its 52-week high of $36.52.
Silver wrote:
“Sinclair Broadcast Group (SBGI-Neutral, $38 PT) reported higher 4Q18 revenues, AEBITDA, and FCF than our and consensus expectations, driven by a better core advertising performance than we anticipated. SBGI also raised the low end of its guidance for 2018/2019 combined free cash flow, with a new range of $1.15B to $1.22B (consensus is at $1.18B), and introduced 2019/2020 FCF guidance of $1.2B to $1.3B, the midpoint of which is in line with current consensus estimates. We note that the consensus likely has not yet factored in the $45M of incremental free cash flow that the Cubs JV is projected to generate. So, consensus is probably closer to the high end of the implied core broadcast FCF guidance range.”
According to TipRanks.com, Silver is a 3-star analyst with an average return of 7.9% and a 83.3% success rate. Silver covers the Technology sector, focusing on stocks such as CSG Systems International, United States Cellular, and Wideopenwest Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Sinclair Broadcast with a $41 average price target.
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Hoegh LNG Partners (HMLP)
B.Riley FBR analyst Liam Burke maintained a Buy rating on Hoegh LNG Partners yesterday and set a price target of $21. The company’s shares opened today at $17.84.
Burke wrote:
“Buy-rated Hoegh LNG Partners LP reported 4Q18 results, which continue to support our Buy recommendation on HMLP units. The MLP , in our view, provides the lowest-risk cash flows of its peers, strong distribution growth, a supportive sponsor, and exposure to high demand floating storage and regasification units (FSRU) vessels. All of HMLP’s cash flows are generated from long-term charters with no direct commodity exposure. Based on its existing long-term charter revenue, we are anticipating stable cash flows. Current contracts should keep EBITDA stable. There is solid underlying demand for LNG which is estimated to grow by more than 3% to 5% annually until 2030.”
According to TipRanks.com, Burke is a 1-star analyst with an average return of -2.1% and a 49.2% success rate. Burke covers the Services sector, focusing on stocks such as Ship Finance International, Dynagas LNG Partners LP, and Scorpio Tankers Inc.
Currently, the analyst consensus on Hoegh LNG Partners is a Moderate Buy with an average price target of $20.
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