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