UPDATE: Credit Suisse Raises Nexstar Target from $30 to $42 Amid Expected Acceleration in Sector Consolidation
Michael Senno of Credit Suisse raised his price target on shares of Nexstar's (NASDAQ: NXST) from $30 to $42 in a research note Tuesday morning. The analyst made the call based on expectations of "rapid consolidation" over the next 12 to 18 months.
Senno claims Nexstar's management will likely target accretive acquisitions in small-to-medium market stations. The analyst believes this M&A will be within the $200-400 million range.
Senno feels "recent seller multiples imply an attractive premium” for Nexstar.
Nexstar shares are up more than 5 percent to $34.01 at last check. Senno's new price target represents potential upside of about 24 percent.
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