Beasley Broadcast Group: Good Results But Leverage Should Be Lowered

Revenues and margins up mainly thanks to the digital business.
Leverage continues to be high; the company should stop acquiring radio stations and focus on paying down debt.
The dividend should be cut and proceeds diverted to paying down debt or buying back shares. But a dividend cut is unlikely due to the investor base.
I recommend buying the stock offering a 5% dividend yield and a 75% upside to our target price of $7.10.

Read more on Seeking Alpha...

Comments