NEW YORK (
shares spiked at open today, spurred by a positive outlook on television advertising.
Analyst Edward Atorino of Benchmark Capital released a report today showing strong trends in the television market due to recent gains in advertising. He maintained his buy rating on Nexstar, but reduced his target price to $7 from $9. Benchmark projected that Nexstar will benefit from improvements in television advertising across the nation, including increased political revenues. However the television broadcasting company has a long-term debt of $655 million.
Due to "current advertising trends and the favorable industry outlook," Benchmark is maintaining its estimate of third quarter revenue growth of 24% year over year to $75 million and projects total revenues for the fiscal year will be up 21% to $306 million. Next year it expects a 3% drop in revenue to $295 million, attributed to weak political advertising.
CFO Thomas Carter
discussed the company's plans during a presentation at the Credit Suisse Conference
in Miami, Fla. on Thursday night. He focused on the importance of creating "highly recognizable local brands" explaining that up to 73% of second-quarter revenue will be generated from local advertisers.
Shares are up almost 1% today to around $4.35.
-- Written by Theresa McCabe in Boston.
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