Grupo Televisa (TV) Shows Stronger Cash Generation but Faces Growth Headwinds and Credit Downgrade

Grupo Televisa, S.A.B. (NYSE:TV) is one of the best NYSE stocks under $5 to buy. On December 11, BofA Securities kept its Neutral rating on Grupo Televisa, S.A.B. (NYSE:TV) stock and increased the price target from $2.60 to $3.30. This change came after factoring in the company’s third-quarter 2025 performance.

BofA’s analysts noted stronger cash generation and are expecting it to reach 5% free cash flow to the firm by 2026. They highlighted Televisa’s moves to lower capital spending and expenses in 2025, which helped support this cash flow improvement. The company also boasts a strong liquidity position, noted the analysts.

But despite the positives, BofA noted that growth is under pressure with a 6% year-over-year drop in results for the first nine months of 2025. Revenue also declined 6.05% over the last twelve months. Key issues that the analysts pointed to include falling user numbers for Televisa’s Sky service, limits on raising broadband prices due to competition, and the eventual need for higher long-term investments in the Cable segment to stay competitive.

Independent of the analyst action, on December 10, Fitch Ratings downgraded Televisa’s long-term foreign and local currency issuer default ratings to ‘BB+’ from ‘BBB-’. The agency also shifted the company to non-investment grade status. Regarding outlook, Fitch assigned a stable rating due to expectations of steady EBITDA and gradual debt reduction through maturities.

Grupo Televisa, S.A.B. (NYSE:TV) is a Mexican multimedia conglomerate that produces and distributes television programming, sports content, and digital media. It also operates cable and satellite pay-TV services.

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