There’s a lot to be optimistic about in the Services sector as 2 analysts just weighed in on Sinclair Broadcast (NASDAQ:SBGI) and Tivity Health Inc (NASDAQ:TVTY) with bullish sentiments.
Sinclair Broadcast (SBGI)
Benchmark Co. analyst Daniel Kurnos assigned a Buy rating to Sinclair Broadcast today and set a price target of $52. The company’s shares closed yesterday at $29.10.
Kurnos said:
“We note that Sinclair, while being accused of running “sidecar” agreements, has successfully established arrangements with related parties in the past, along with a host of JSAs and SSAs, although perhaps this is the end of that practice. If this is just a cap issue, we see WPIX as saleable given limited overlap with other major buyers. The problem if Sinclair has to rework the buyer list, however, is the DOJ’s refusal to allow in-market buyers, limiting the potential pool, although Sinclair could choose to sell the better in-market assets to raise interest (which we suspect might be the case in some markets). Furthermore, the related- party EBITDA, estimated at ~$100 million ex-NY, would be eliminated from the PF calculation, although there would be some offsetting proceeds from outright sales. Please refer to our chart on page 2 for in-market overlap.”
According to TipRanks.com, Kurnos is a 5-star analyst with an average return of 13.6% and a 60.2% success rate. Kurnos covers the Services sector, focusing on stocks such as Chicken Soup For The Soul Entertainment Inc, Booking Holdings Inc, and 1-800 Flowers.com.
Currently, the analyst consensus on Sinclair Broadcast is a Strong Buy with an average price target of $41.50, a 42.6% upside from current levels. In a report released today, B.Riley FBR also maintained a Buy rating on the stock with a $36 price target.
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Tivity Health Inc (TVTY)
Barrington analyst Michael Petusky assigned a Buy rating to Tivity Health Inc today and set a price target of $47. The company’s shares closed yesterday at $35.40.
Petusky commented:
“We expect Tivity to generate $153.5 million in revenue in the second quarter, an increase of 10.5% from second quarter 2017. The consensus expectation is $153.0 million. After a somewhat challenging first quarter in which top-line growth was 6.4% (due largely to the unusually difficult winter weather throughout much of the eastern U.S. and a tough flu season), we believe that revenue growth trends will bounce back to low-double digits for the remainder of the year.”
According to TipRanks.com, Petusky is a 4-star analyst with an average return of 16.8% and a 64.7% success rate. Petusky covers the Healthcare sector, focusing on stocks such as Anika Therapeutics Inc, Varian Medical Systems, and Merit Medical Systems.
Currently, the analyst consensus on Tivity Health Inc is a Strong Buy with an average price target of $48.83.
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