Bear Stearns Ups Entravision to Outperform

Analyst Victor Miller upgraded on the Spanish media company's bright third-quarter outlook

Bear Stearns raised Entravision Communications (EVC ) to outperform.

Analyst Victor Miller says the Spanish-language broadcasting company's second-quarter revenue and EBITDA beat his estimates. He notes TV revenue rose 11%, with both local and national ad spending up 11%. TV-broadcast cash flow rose 26%. Miller says same-station radio revenue rose 8%, while radio-broadcast cash flow rose 14%.

He notes outdoor operations are expected to contribute in the third quarter, with revenue growth of 7% after being down for the last four quarters. He says cost growth looks predictable, operating trends are apparent, and ratings trends are strong. Miller upped the $75 million 2004 EBITDA est. to $76.5 million as Entravision's second-quarter results and third-quarter guidance are better than expected. He sees $87.7 million in 20005 EBITDA, and set a $9.50 to $9.75 price target.

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