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Shares of Sinclair Broadcast Group Inc.
SBGI, + 27.25%
climbed 25% to a record high, on the way to gain the largest gain in a day in 10 years, after signing a contract with the television company for the purchase of regional sports networks at Walt Disney Co.
DIS + 0.04%
invited B. Riley FBR to turn up. Sinclair announced Friday night that it has signed a deal for the purchase of 21 RSN and Fox College Sports for $ 10.6 billion. This contract has confirmed a report published Thursday in the Wall Street Journal. Three months after Sinclair had announced the launch of a network will be the exclusive home of the Chicago Cubs Major League Baseball. B. Riley's Zack Silver analyst increased his rating on Sinclair's buying action after being neutral over the past 8 months and raised his price target from $ 46 to $ 57. Silver said the deal was like a "homerun" for Sinclair, as it would see an increase of more than $ 700 million in free cash flow, more than double its current estimate. The average price target of the seven analysts surveyed by FactSet rose from 42 USD to 48.50 USD at the end of April. The title of Sinclair, which is about to achieve the largest gain in a day since its 33% rise on August 21, 2009, has now more than doubled (up 113%) since the beginning of the year. year, while the Dow Jones Industrial Average index
DJIA, -0.87%
gained 12%.
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