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Benchmark Co. Believes Nexstar (NXST) Still Has Room to Grow


In a report released today, Daniel Kurnos from Benchmark Co. maintained a Buy rating on Nexstar (NXST), with a price target of $115. The company’s shares closed yesterday at $88.32, close to its 52-week high of $89.75.

Kurnos noted:

“We note that Nexstar can get creative to sell additional top-tier markets without significantly impacting EBITDA by moving non- big-4-affiliated or independent stations in those markets (6 markets between 3-25 fit that criteria; see page 2 for overlap and prior planned divestitures from SBGI). We think a sub 9x buyer’s multiple (on highly conservative synergies and material retrans and political upside in 2020) is very reasonable. We are establishing a new $115 per share price target using a sum-of-the-parts analysis. We estimate that, ex-WGNA and ex-Food, blended 2019/2020 TV EBITDA will be $1.4 billion.”

According to TipRanks.com, Kurnos is a 5-star analyst with an average return of 10.9% and a 55.8% success rate. Kurnos covers the Services sector, focusing on stocks such as Booking Holdings Inc, Zillow Group Inc, and Gray Television.

Nexstar has an analyst consensus of Strong Buy, with a price target consensus of $95.83, implying an 8.5% upside from current levels. In a report released yesterday, Barrington also maintained a Buy rating on the stock with a $110 price target.

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The company has a one-year high of $89.75 and a one-year low of $60.30. Currently, Nexstar has an average volume of 552.6K.

Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is negative on the stock.

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Nexstar Media Group, Inc. is a television broadcasting and digital media company, which focuses on the acquisition, development and operation of television stations and interactive community websites and digital media services in the U.S. The company provides services free over-the-air programming which includes programs produced by networks with which the st