UPDATE: J.P. Morgan Raises PT on Sinclair Broadcast Group on Announced Fisher Communications Acquisition

In a report published Friday, J.P. Morgan analyst Alexia S. Quadrini reiterated a Neutral rating on Sinclair Broadcast Group

, and raised the price target from $17.50 to $26.00. In the report, Quadrini noted, “On Thursday, Sinclair announced plans to purchase Fisher Communications (FSCI). Sinclair has agreed to purchase all of FSCI's outstanding common stock at a price of $41 per share (a 5% premium to FSCI's 4/10/13 closing price, but a 44% premium to its price on 1/9/13—the day before Fisher announced it was exploring strategic alternatives). Sinclair expects the transaction, which will be financed through a bank loan and/or by accessing the capital markets, to close in Q3,13 (subject to FSCI shareholders and FCC approval). The acquisition could lift Sinclair's total net leverage by just 0.2x.” Sinclair Broadcast Group closed on Thursday at $23.69.