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Grupo Televisa (TV) Shows Stronger Cash Generation but Faces Growth Headwinds and Credit Downgrade
Yahoo Finance· 2025-12-31 16:41
Group 1 - Grupo Televisa, S.A.B. (NYSE:TV) is considered one of the best stocks under $5 to buy, with BofA Securities maintaining a Neutral rating and increasing the price target from $2.60 to $3.30 after the company's Q3 2025 performance [1] - Analysts from BofA noted stronger cash generation, expecting it to reach 5% free cash flow to the firm by 2026, supported by reduced capital spending and expenses in 2025 [2] - The company has a strong liquidity position, which is a positive aspect highlighted by analysts [2] Group 2 - Despite the positive cash flow outlook, Grupo Televisa faces growth challenges, with a 6% year-over-year drop in results for the first nine months of 2025 and a 6.05% revenue decline over the last twelve months [3] - Key issues affecting growth include declining user numbers for Televisa's Sky service, competitive pressures limiting broadband price increases, and the need for higher long-term investments in the Cable segment [3] - On December 10, Fitch Ratings downgraded Televisa's long-term foreign and local currency issuer default ratings to 'BB+' from 'BBB-', moving the company to non-investment grade status, but assigned a stable outlook due to expectations of steady EBITDA and gradual debt reduction [4]