Thomas Weisel raised its estimates on Univision Communications (UVN).
Analyst Gordon Hodge says both television and radio exceeded expectations for revenue and EBITDA; radio generated 10% same-station sales growth and 21% EBITDA growth -- the leverage he had hoped for following the merger with Hispanic Broadcasting and several years of investment spending.
Hodge expects Univision to substantially outpace general market broadcasting revenue growth in the fourth quarter and 2004, due to strong ratings gains and improving sell-out, with only moderate price increases. He estimates Univision's fair value is $38 to $52. Hodge raised the 53 cents 2003 earnings per share estimate to 54 cents, and sees 67 cents in 2004. He reiterates his outperform rating.