phive2015
Investment Thesis
It's been just over a year since I last wrote about Nexstar Media Group (NASDAQ:NXST). Despite the local television giant's stock performance crushing the S&P 500 over that period by a factor of five, NXST has
Nexstar Media Group: The Path To $550/Share
Summary
- Nexstar Media Group is undervalued due to misconceptions about its growth potential and the impact of its recent acquisition of The CW Network.
- The company has a strong business model, with potential for increased retransmission fees, a turnaround of The CW, and growth in local TV advertising.
- In my mid-term bull case, Nexstar could be worth $550 per share in four years, offering investors significant upside potential.
- To top things off, it pays nearly a 3.5% dividend, trades at 4.0x FCF, and buys back a lot of stock.
Contrarian investor covering deep value equities. I conduct due diligence on individual companies with a focus on inflection points and catalysts.Actionable ideas only.
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.
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