Benchmark Raises Grupo Televisa Price Target to $9.00 on Q2 Earnings and Cost Improvements

Benchmark raised Grupo Televisa's (TV) price target to $9.00 from $7.00, citing cost improvements in Mexico cable operations and a 10% increase in adjusted OIBDA from the TelevisaUnivision joint venture. The analysts also noted a 4.5% sequential improvement in the Mexican peso spot rate. Grupo Televisa is a Mexican multimedia conglomerate that owns cable companies and provides TV, internet, and mobile services through its Cable and Sky segments.

Grupo Televisa's (TV) shares experienced a significant decline following a downgrade from Goldman Sachs. The investment bank reduced its rating on the Mexican multimedia conglomerate from "Buy" to "Neutral" and lowered its price target from $2.40 to $2.60 [1]. The move came amidst a broader market downturn and economic slowdown in Latin America, with the U.S. economy contracting in the first quarter.

The downgrade was accompanied by a similar adjustment from UBS, which also reduced its price target on Televisa from $2.40 to $2.50 while maintaining a neutral rating [1]. The downgrades reflect a cautious outlook on the company's financial performance and potential challenges in the current economic climate.

Televisa's earnings reports have shown mixed results. In the second quarter of 2025, the company reported a swing to profit, with shares rising after the company cut its 2025 investment budget [2]. However, in the first quarter, Televisa experienced a 66% profit slide, which led to a 6% drop in share prices [2].

The company's financial performance has been impacted by a decline in overall ad revenue, subscription, and licensing monies. Despite these challenges, TelevisaUnivision, a joint venture between Televisa and Univision, reported a significant increase in net income and a 4.5% sequential improvement in the Mexican peso spot rate [2]. The company has been working to streamline operations and bolster its balance sheet under the leadership of CEO Daniel Alegre.

Benchmark, an independent research firm, recently raised Televisa's price target to $9.00 from $7.00, citing cost improvements in Mexico cable operations and a 10% increase in adjusted OIBDA from the TelevisaUnivision joint venture [1]. The analysts also noted a 4.5% sequential improvement in the Mexican peso spot rate, which could provide a boost to the company's earnings.

In conclusion, Grupo Televisa's shares fell after a downgrade from Goldman Sachs, reflecting market concerns and economic headwinds. However, the company's recent earnings reports and operational improvements suggest potential upside for investors. As the economic outlook improves, Televisa's financial performance could benefit from cost savings and currency appreciation.

References:
[1] https://www.marketscreener.com/news/grupo-televisa-shares-fall-after-goldman-sachs-downgrade-ce7c5edddc8ff625
[2] https://www.aol.com/televisaunivision-cuts-expenses-boost-q2-110000698.html