Nexstar is seeking to realize value at what could be a near-term peak based on sentiment in the TV sector, RBC Capital Markets analyst David Bank said in a research note.
Bank, who raised his price target on the stock by $2 to $13, said the proximity to a presidential election year and positive momentum in retransmission consent fee negotiations are fuelling investor interest in TV broadcasting.
"We believe NXST could fetch $15/share on an outright sale," Bank said.
Bear Stearns analyst Victor Miller also said he estimated Nexstar's take-out at $15 to $20.
"Nexstar has been in a prolonged acquisition mode and has never been able to sell a property. With its recent aggressive run at Clear Channel's TV stations, it looked like more of the same. But this change of heart should pay off for shareholders," Miller said in a research note.
Nexstar Broadcasting owns KSNF in Joplin and KSFX in Springfield, and operates KODE in Joplin and KOLR in Springfield.
3 comments:
It would be interesting to see how a new owenership group would handle two things.
First--Shared services between KODE & KSN and the other markets Nexstar operates them. Joplin is unique in that both stations do not operate out of the same building---others in the Nexstar chain do.
Second--How much current management would be kept? If they are turning a profit...they're likely to stay.
Don't be so sure they'd all stay. Back in 98 KODE was churing a fantastic profit. New owners came in and tossed Jerry Montgomery and passed over John Hoffmann for an incompetent out-of-towner.
Hoffmann immediately left for KSN, taking John Emrich, Gary Bandy and a host of others with him. KODE was never the same.
Point is, ownership makes decisions without considering success. Alas.
And with Hoffman now, things have never been worse.
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