UPDATE: Noble Financial Capital Markets Upgrades Nexstar Broadcasting Group to Buy, Reiterates $54 PT on More Compelling Entry Point

In a report published Monday, Noble Financial Capital Markets analyst Michael Kupinski upgraded the rating on

from Hold to Buy, and reiterated the $54.00 price target. In the report, Noble Financial Capital Markets noted, “We believe that the market has reset near term expectations in the media group, creating a more compelling entry point; we are changing our rating from Hold to Buy. In our view, the company is well positioned to grow faster than many of its television industry peers based on its faster growing digital business and acquisition fueled growth opportunities. Significant room to grow; with coverage of roughly 16% of the nation's television households, the company is well below the 39% ownership cap. We believe that there are roughly 35 to 40 television stations, worth $1.25 billion to $1.6 billion in the company's wheelhouse that could be potential targets in the near to intermediate term. Near current levels, the NXST shares trade at a compelling 12.8% free cash flow yield; our price target of $54 assumes a 9.7% free cash flow yield based on our 2015 free cash flow expectations.” Nexstar Broadcasting Group closed on Friday at $40.86.