Skip to main content

Edwards high on Tribune

A.G. Edwards & Sons Inc. has reiterated its buy recommendation for Tribune Co.

Citing a slightly better first-quarter 2002 and particularly excited by the
prospects of the company's new TV duopoly in Indianapolis -- it is getting
WTTV(TV) from Sinclair Broadcast Group Inc. for $125 million, and it already owns Fox affiliate WXIN(TV)
there -- Edwards upped its 2002 earnings-per-share estimate from $1.73 to $1.83.

Edwards said that although Tribune paid about 20 times cash flow for WTTV,
savings from colocation and back-office and sales synergies should bring that
down to about 11 times.

It also suggested that adding another The WB Television Network affiliate to its "strong stable" of
WB stations should make Tribune increasingly attractive to national

Finally, it said, the combination of the two stations should give Tribune 30 percent
of the total TV-market revenue, but the young-skewing duo should give it
more ad-friendly demos that will allow it to improve its effective market share
beyond 30 percent.