Updated Conservative Outlook For Nexstar: 11.5% Expected Annual Returns

Summary

  • The company continues to trade at undemanding valuations, generating solid levels of cash and materially reducing share count and debt load.
  • The main risk to the thesis continues to be the evolution of the cable industry and my assumptions attempt to incorporate that fact.
  • After updating to the downside my already conservative assumptions, I continue to rate the company a buy as the expected returns are attractive.

Visual contents concept. Social networking service. Streaming video. communication network. 3D illustration.

metamorworks

This article is a follow up to my original take on Nexstar (NASDAQ:NXST) after two quarters to see if anything significant has changed around the main drivers for the company. I would recommend quickly going through my

This article was written by

Full time conservative value investor.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NXST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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