Guggenheim Downgrades Tegna to Neutral, Keeps Price Target at $19.00

Guggenheim downgraded Tegna (TGNA) to "Neutral" from "Buy" while maintaining a $19.00 price target. This follows various historical shifts in ratings and price targets for the media company, which generates revenue from advertising, marketing services, subscriptions, and political advertising. The average one-year price target is $21.33, with a high estimate of $22.00 and a low estimate of $21.00, implying an upside of 1.30% from the current price.

Investment research firm Guggenheim has downgraded TEGNA, Inc. (NYSE: TGNA) from a "Buy" rating to "Neutral," removing its previous $19 price target [1]. The decision comes in the wake of Nexstar Media Group's announcement of a definitive agreement to acquire TEGNA for $22 per share in cash [1]. The acquisition, valued at approximately $6.2 billion, includes the refinancing of TEGNA's outstanding debt.

TEGNA's stock has been on an upward trajectory, delivering a 59% return over the past year according to InvestingPro data [1]. However, the acquisition has led Guggenheim to reassess its investment thesis. The firm cited the favorable regulatory backdrop as a positive factor for the deal, but the acquisition's impact on TEGNA's future prospects is seen as a significant factor in the downgrade.

TEGNA recently reported its second-quarter 2025 earnings, with an earnings per share of $0.44, which exceeded analyst expectations by 22.22% [1]. Despite this strong performance, broader market concerns have contributed to a cautious investor outlook. The acquisition by Nexstar, which is expected to close in the second half of 2026, will combine the two companies into a larger entity with 265 full-power television stations across 44 states and the District of Columbia [3].

Halper Sadeh LLC, an investor rights law firm, has initiated an investigation to determine whether the sale of TEGNA to Nexstar is fair to shareholders [2]. The investigation will assess whether TEGNA and its board of directors complied with federal securities laws and their fiduciary duties. Shareholders are encouraged to contact Halper Sadeh LLC for more information about their legal rights and options.

The acquisition is expected to create the largest local broadcasting company in the U.S., with a combined revenue of $8.1 billion and an adjusted EBITDA of $2.58 billion [3]. Both companies have pledged to continue investing in local journalism, community-focused programming, and digital innovation.

The market's initial reaction to the acquisition was positive, with TEGNA's stock jumping 4.5% in the morning session following the announcement [4]. However, the shares cooled down to $21, up 4.1% from the previous close. The acquisition represents a significant 31% premium over TEGNA's 30-day average stock price, rewarding current shareholders [4].

References:
[1] https://www.investing.com/news/analyst-ratings/guggenheim-downgrades-tegna-stock-rating-to-neutral-following-nexstar-acquisition-93CH-4204808
[2] https://www.morningstar.com/news/business-wire/20250819430282/tgna-stock-alert-halper-sadeh-llc-is-investigating-whether-the-sale-of-tegna-inc-is-fair-to-shareholders
[3] https://tylerpaper.com/2025/08/21/nexstar-announces-plans-to-acquire-tegna-parent-company-of-tyler-based-news-station/
[4] https://www.tradingview.com/news/stockstory:97263acb8094b:0-tegna-tgna-stock-is-up-what-you-need-to-know/