Things are continuing to look up for Townsquare Media.
A top Wall Street market intelligence firm has upgraded the local media and digital solutions company’s outlook.
S&P Global revised its outlook on Townsquare Media to “positive,” from “stable.”
At the same time, S&P affirmed its ‘B’ issuer credit rating on Townsquare.
As S&P sees it, its positive outlook on the owner of radio stations in mid- and small-sized markets reflects its expectation that Townsquare’s gross leverage is on track to improve below 5.0x by the end of 2022.
This expected improvement, Townsquare notes, stems from the ongoing recovery in the company’s broadcast advertising revenue, coupled with continued expansion of its strong digital business.
There’s also the forecast of exceptional political revenue related to the 2022 U.S. midterm elections.
Commenting on the S&P upgrade, Townsquare CFO Stuart Rosenstein said, “Townsquare’s continued success is a testament to the strength of the Townsquare Team, our digital platform and solutions for local businesses, and our careful expense management efforts. We are honored to have a reputable external source such as S&P, take note of our strong performance.”
With the S&P’s revised outlook coming alongside the appearance of Rosenstein and CEO Bill Wilson at the Sidoti Virtual Investor Conference, management confidence remains high ahead of the release of the company’s Q4 and full-year 2021 results. That confidence is expected to continue through 2022, with a firm date for the release of those results yet to be announced by Townsquare.
As of 12:06pm Eastern, TSQ was trading at $12.93, up 9 cents from Friday.