Report
EUR 1140.00 For Business Accounts Only

TGNA & CARS, Updated Analysis, End of May Spinoff,+36% Upside (Post-Spin)


  • Recent Weak Q1FY17 Earnings Prompts Revisal of Target Price of TGNA (ex-Spinoff) & Cars.com (Spinoff - CARS)
  • Still Recommend Initiating a Position in TGNA (Pre-Spin) at Current Levels ($22.50)
  • Parent (TGNA): Monitoring Potential Sale of CareerBuilder.com / The Edge’s Conservative Deal Valuation at $772m
  • Continued Investment in New Product & Services to Foster Growth
  • Margin Expansion in Spinoff (CARS) to Narrow the Valuation Gap with Peers (Carsales.com) Longer-term
  • Increasing Mobile Penetration in CARS to Benefit Going Forward
  • Cars.com (Spinoff) Upside: +36% (Base) & +65% (Bull)
  • First Day of Normal Trading: June 1, 2017
  • Remains an ESR Model Portfolio Holding

  • Underlying
    Cars.com Inc.

    Cars.com is a digital marketplace and solutions provider for the automotive industry that connects car shoppers with sellers and original equipment manufacturers. The company's portfolio of brands includes Cars.com, Dealer Inspire, DealerRater, Auto.com, NewCars.com and PickupTrucks.com. The CARS marketplace consists of a website that features a database of new and used vehicle listings, reviews, news and research section. Dealer Inspire is engaged in automotive technology that provides websites, technology solutions and advertising services to dealers across the United States and Canada. DealerRater is a source of user-generated reviews of both automobile dealers and dealership salespeople.

    Provider
    The Edge Group LLC
    The Edge Group LLC

    The Edge Group - Global Fundamental Catalyst Investing. The Edge provides investors with access to hidden corporate value from Global Special Situations using a pioneering approach to investments. Founded in 2005 by fund management and investment banking professionals to provide high quality, private equity-level research on Global Corporate Divestitures for the benefit of fundamental event-driven, growth and value-oriented investors in this difficult to track, but proven investment space.

    The Edge will look to screen and analyze include Spinoffs; Reverse Morris Trusts; Squeeze Outs; Privatizations; Demutualization; Deep Discounted; Rights Issues; Rights Offering; Restructuring; Insider Purchases / Buying Change of Management / CEO Change; Deteriorating fundamentals; Post-Bankruptcy; Reorganization; Tender Offer; M&A Deals; Secondary Offering; Share Swap; Thrift Conversions; Share Buybacks; Activist; Mergers. All analyzed from a fundamental point of view.

     

     

    Other Reports on these Companies
    Other Reports from The Edge Group LLC

    ResearchPool Subscriptions

    Get the most out of your insights

    Get in touch