As a “traditional media” business, Entercom Communications is subject to the prevailing market view that its business “is in terminal decline,” while “new media” companies like Spotify are expected to grow to the sky — and are priced by the market accordingly.
That’s what Knackwell Capital Manangement writes in an assessment of Entercom stock released Monday. “At the present share price, the market is implying that the decline in Entercom’s business will be rapid,” it declares. Yet, it believes the negative market sentiment in Entercom “looks out of line with its business fundamentals.”
