Nexstar stock price target raised to $250 from $225 at Benchmark

Investing.com - Benchmark raised its price target on Nexstar Broadcasting Group (NASDAQ:NXST) to $250.00 from $225.00 on Wednesday, while maintaining a Buy rating on the stock. According to InvestingPro data, Nexstar currently trades at an attractive P/E ratio of 10.4x with a dividend yield of 3.58%.

The price target increase follows Nexstar’s announcement of an all-cash, $22 per share bid for TEGNA (NYSE:TGNA), which was unanimously approved by both companies’ boards. The acquisition would create a combined entity covering 80% of US households across 132 designated market areas (DMAs). Nexstar brings significant financial strength to this deal, with $5.3 billion in revenue and $1.71 billion in EBITDA over the last twelve months.

Benchmark noted significant overlap in 35 out of 51 of TEGNA’s DMAs, which could drive synergies exceeding 35% of TEGNA’s adjusted EBITDA. The firm initially projects $300 million in synergies but suggests this figure could potentially be 50% higher. InvestingPro analysis reveals that management has been actively buying back shares, demonstrating confidence in the company’s future prospects. Discover 13 additional exclusive insights with an InvestingPro subscription.

The transaction still requires regulatory approval, with scrutiny expected from the Department of Justice and potential concerns regarding ownership cap regulations. Benchmark anticipates the deal will close in the second half of 2026.

The research firm indicated that if the acquisition closes as proposed with enhanced synergies, Nexstar could be worth more than $300 per share, though the current price target accounts for regulatory uncertainty and potential required divestitures.

In other recent news, Nexstar Media Group reported second-quarter 2025 earnings that exceeded analyst expectations. The company achieved an earnings per share (EPS) of $3.06, surpassing the projected $2.81, marking an 8.9% surprise. Revenue for the quarter reached $1.23 billion, slightly higher than the anticipated $1.21 billion. Additionally, Nexstar announced a significant acquisition of TEGNA Inc. for $6.2 billion in an all-cash deal. This transaction values TEGNA at $22.00 per share, offering a 31% premium over its average 30-day stock price. The acquisition, which has received unanimous approval from TEGNA’s board, will expand Nexstar’s reach to 265 full-power television stations across 44 states and the District of Columbia. Guggenheim responded to these developments by raising its price target for Nexstar to $250 from $220, while maintaining a Buy rating on the stock. The firm highlighted the acquisition as highly accretive, with over 40% free cash flow accretion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.