Wells Fargo analyst Marci Ryvicker initiated coverage of Tribune Media Co., rating the company in her "outperform" category.
Ryvicker says Tribune's station group is well positioned for long-term net retransmission revenue growth, will get a boost from the 2016 presidential elections and has opportunities to monetize its spectrum worth $5 to $9 a share.
She also things WGN America, which Tribune is converting from a superstation to a cable network, is "worth the wait." She calculates that WGNA is worth $1.3 billion, only half of which is currently reflected in Tribune's stock price.
Investments including stakes in Food Network and Career Builder now generate more than $200 million in cash flow and present future monetization opportunities.