Grupo Televisa (TV) Sees Upside From TelevisaUnivision and YouTube TV Deal

Grupo Televisa, S.A.B. (NYSE:TV) ranks among the best telecom stocks to invest in. On December 11, BofA Securities maintained a Neutral rating on Grupo Televisa, S.A.B. (NYSE:TV), boosting its price target from $2.60 to $3.30. The rise comes after BofA included third-quarter results into its predictions, noting Televisa’s enhanced cash generation, which is projected to provide a 5% FCF to the company by 2026.

Despite the strong cash flow outlook, BofA identified a number of execution risks for Grupo Televisa, S.A.B. (NYSE:TV), including diminishing Sky user numbers and competition challenges that limit broadband price hikes.

Moreover, BofA highlighted the possible advantages of TelevisaUnivision, which is 45% owned by Televisa, pointing to the VIX streaming service’s impressive initial growth, which accounted for almost 20% of revenues in 2024 and has already turned profitable. Adding on, just a month ago, TelevisaUnivision and YouTube TV announced a multi-year distribution agreement that restored the media company’s networks on the pay-TV service following a nearly two-month halt.

Grupo Televisa, S.A.B. (NYSE:TV) is a major Mexican telecommunications and media company headquartered in Mexico City. The company owns and operates cable companies and provides direct-to-home satellite pay television services in Mexico and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.