Nexstar downgraded to Hold at Loop Capital on valuation and headwinds

Loop Capital analyst Alan Gould downgraded Nexstar (NXST) to Hold from Buy with a price target of $190, down from $200, after its Q3 earnings miss. The company is a premiere local broadcaster, has the largest scale, the best track record and balance sheet to take advantage of any potential deregulation in the broadcast industry, but the stock is also approaching Loop’s price target and facing a number of headwinds, the analyst tells investors in a research note. Political revenue will be much lower than anticipated in 2024, advertising trends are still challenging for the traditional media companies, and fewer sub renewals next year should provide some distribution headwinds, Loop added.