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On Thursday, Citi analysts maintained a Neutral rating for Nexstar Broadcasting Group (NASDAQ:NXST) with a steady price target of $186.00. According to InvestingPro analysis, the stock appears undervalued, with strong financial health metrics and an attractive P/E ratio of 7.89. The decision comes after an evaluation of the company’s fourth-quarter performance in 2024 and a forward-looking assessment.
Nexstar Broadcasting Group reported fourth-quarter 2024 revenue and adjusted EBITDA figures that surpassed Wall Street’s expectations, with revenue growth of 9.61% and a healthy dividend yield of 4.4%. Notably, the company successfully diminished operating losses at The CW network by $126 million over the course of the year.
Citi’s analysts have made slight adjustments to their forecasts for 2025 and 2026, while also incorporating projections for 2027 into their model. Despite the positive performance indicators, the firm’s stance on Nexstar’s stock remains unchanged, as does the price target.
The update from Citi reflects the latest financial outcomes for Nexstar and the analysts’ expectations for the company’s future performance. The maintenance of the Neutral rating suggests that the analysts see the stock as fairly valued at the current price target, taking into account the company’s recent achievements and its long-term prospects.
In other recent news, Nexstar Media Group reported its fourth-quarter 2024 earnings, revealing a record full-year revenue of $5.4 billion. Despite missing the earnings per share forecast with an EPS of $7.56 compared to the expected $8.41, the company demonstrated resilience through strategic initiatives. Guggenheim analysts raised their price target for Nexstar to $220, maintaining a Buy rating, following the company’s fourth-quarter revenue and adjusted EBITDA, which exceeded their expectations. Nexstar’s guidance for 2025 projects an EBITDA range of $1.5 billion to $1.595 billion, with Guggenheim setting their expectation at $1.542 billion.
Benchmark analyst Daniel Kurnos also adjusted Nexstar’s stock target to $225 while maintaining a Buy rating, emphasizing the company’s unique position and potential regulatory tailwinds. Nexstar has significantly reduced losses at The CW network and plans for profitability by 2026, contributing to investor confidence. The company’s recent operational improvements and strategic initiatives have bolstered investor sentiment, despite some challenges in achieving CW network profitability. Nexstar’s outlook for 2025 includes stable distribution revenue and potential growth in non-political advertising, driven by digital expansion and programming improvements.
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