US Healthcare + Merger / Arb Catalysts: What’s next from DC
Healthcare
2026 is shaping up to be an active year for US healthcare policy, with President Trump's focus on affordability impacting Congressional and Administration priorities. Near term, Congress is considering spending legislation impacting clinical labs (Quest Diagnostics, Labcorp), diagnostics (Natera) and life science tools (Danaher, Thermo Fisher). Investors are also awaiting clarity on MFN deals and their impact on companies that have not yet signed agreements with the Administration. Beyond HC, Aldis also leverages their connectivity to provide timely insights and updates around M&A with regulatory catalysts, including Nexstar-Tegna and Union Pacific-Norfolk Southern. Contact us below for further information on events hosted by Aldis and access to their content library.
Edition: 228
- 23 January, 2026
Communications
NXST is one of only two TV broadcasters that is rated Overweight by Craig Huber. The company is generating a tremendous amount of FCF (he estimates $1.65bn after dividends over 2025 & 2026, which is more than 30% of its current m/cap). With a stronger balance sheet than peers, NXST is better insulated from a downturn in the ad market and is well-positioned for acquisitions if regulatory constraints are relaxed in the next year, as Craig expects. He sees huge pent-up demand for another wave of consolidation as well as demand for doing TV station swaps to create duopolies in markets among two top-4 rated TV stations given the cost synergies are massive.
Edition: 211
- 16 May, 2025
Communications
Craig Huber makes the case for a $200+ stock price by year end - the media company will continue to outperform due to its attractive valuation, high FCF, historically low leverage, and expected very strong political ad revenue. NXST trades at only 6.1x Craig's average 2023/24(E) EBITDA and 8.9x (11.3% yield) unlevered FCF vs. Scripps at 8.0x, with a debt ratio of 5.5x (NXST 3.1x). FCF (after dividends) to total $4.3bn in 2022-24E, which is 65% of the current M/Cap. Note that his estimates do not include any benefit from being able to further monetise spectrum. Craig believes the share price will hockey stick up once the first material spectrum leasing deal is announced.
Edition: 135
- 13 May, 2022