Tegna (TGNA) Shares Rise 3.5% on FCC Chairman's Potential Lift of Local TV Station Cap
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Stock Movement: Tegna's shares surged 3.5% following reports that FCC Chairman Brendan Carr may lift the local TV station cap, although they have since returned to unchanged levels, indicating market caution regarding policy changes.
- Policy Change Expectations: According to a Dow Jones report, Carr could lift the cap within one to three months, which would facilitate Nexstar Media's proposed acquisition of Tegna, potentially creating significant synergies.
- Acquisition Outlook: Benchmark analyst Daniel Kurnos maintains that despite the surrounding noise, Nexstar will successfully acquire Tegna either through a cap increase or waiver, forming a formidable market presence.
- Support vs Opposition: Carr's support for lifting the cap contrasts with President Trump's late November remarks opposing changes to the TV ownership limit, highlighting the uncertainty in the policy environment that could impact the acquisition process.
Analyst Views on NXST
Wall Street analysts forecast NXST stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NXST is 232.25 USD with a low forecast of 204.00 USD and a high forecast of 250.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 206.320
Low
204.00
Averages
232.25
High
250.00
Current: 206.320
Low
204.00
Averages
232.25
High
250.00
About NXST
Nexstar Media Group, Inc. is a diversified media company with television broadcasting, television network and digital media assets operating in the United States. The Company produces and distributes engaging local and national news, sports and entertainment content across its television and digital platforms. The Company’s reportable broadcast segment includes television stations and related local websites that Nexstar owns, operates, programs or provides sales and other services to in various markets across the United States, NewsNation, a national cable news network, two owned and operated multicast networks and other multicast network services, and WGN-AM, a Chicago radio station. The other operating segments, The CW and digital businesses, focused on the national marketplace. The Company’s portfolio of digital assets, including its local TV station websites, The Hill and NewsNationNow.com. Its national television properties include The CW, NewsNation, Antenna TV, and Rewind TV.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
