Hemisphere Media (HMTV) 'Buy' Reiterated at Maxim Group Post Q1

Maxim Group analyst John Tinker reiterated a Buy rating and $18 price target on Hemisphere Media Group (NASDAQ: HMTV) following Q1 results.

Tinker commented, "Q1 saw revenue growth of 55% to $21M, driven by the inclusion of Cinelatino and WAPA revenue increases. Excluding these effects, organic growth was 7%, despite macros headwinds in Puerto Rico. EBITDA increased 90% y/y to $8M and also grew organically 7%. Results compared to our revenue estimate of $24M and EBITDA estimate of $10M, as the company recognized expenses related to the recently announced acquisition of the Media World Networks and programming expenses related to the rollout of two new shows. "

He added, "There’s no change to the company’s 2014 adjusted EBITDA guidance of $49M-$51M, which is in line with our estimate of $51M. Guidance for 2014 represents a 48% increase from FY13 reported EBITDA of $34M. Management expects the Media World Networks to contribute ~$9M of EBITDA in 2014, implying 2014 organic EBITDA growth of 10% y/y to $41M, up from $38M. We forecast a further 18% growth in 2015 to $60M. We believe that the back-half of the year could be particularly strong as the company is better able to sell ads once Nielsen (NLSN - $47.13 - NR) ratings for WAPA USA are finalized. Cinelatino should also offer advertising by year-end. "

For an analyst ratings summary and ratings history on Hemisphere Media Group click here. For more ratings news on Hemisphere Media Group click here.

Shares of Hemisphere Media Group closed at $12.40 yesterday.

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