Nexstar Received its Third Buy in a Row

After Benchmark Co. and Barrington gave Nexstar (NASDAQ: NXST) a Buy rating last month, the company received another Buy, this time from B.Riley FBR. Analyst Barton Crockett assigned a Buy rating to Nexstar today and set a price target of $87. The company’s shares closed on Friday at $69.13.

Crockett wrote:

“We update our Nexstar (NXT) estimates and take our price target down $12 from $99 to $87 after the company’s recent 1Q18 earnings report. Our Adj. EBITDA estimate for 2018 comes down a bit, mainly because corporate expense seems to be running higher than we had formerly modeled. Our price target comes down because of the EBITDA trim on a slightly more cautious assumption for EV/EBITDA multiple. The lowering of tax rates should boost EV/EBITDA multiples for Nexstar and TV station peers, because free cash flow conversion is improved. But secular fears weighing on the sector are proving more persistent than we had hoped, prompting us to adopt a slightly more conservative valuation argument.”

According to TipRanks.com, Crockett is a 4-star analyst with an average return of 5.2% and a 57.6% success rate. Crockett covers the Services sector, focusing on stocks such as Liberty Media Corporation Series A Liberty SiriusXM Common Stock, Qurate Retail Group Inc, and Sirius XM Holdings Inc.

Currently, the analyst consensus on Nexstar is Strong Buy and the average price target is $91.40, representing a 32.2% upside.

In a report issued on May 11, Barrington also assigned a Buy rating to the stock with a $96 price target.

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Based on Nexstar’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $48.12 million. In comparison, last year the company had a net profit of $6.05 million.

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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 & digital media services in the United States.