Gilford Securities Reiterates Buy Rating on Nexstar Broadcasting (NXST)

Gilford Securities is out with a research report this morning, where it reiterates its Buy rating on Nexstar Broadcasting NXST; it has an $8.00 price target on the stock. The GS analysts cited the popular car web site, Autobytel, which recently revealed a remarkable amount, 83% of the public, may buy an auto in 2011. 44% said they're looking now, 22% will be in the market in 6 mo., with 16% looking in 6-12 mo. The analysts also noted that the last 2 quarters for TV have seen 83% ($556MM) and 74% ($701MM) for Q2'10A and Q3'10A, respectively. If the actual and prospective foot traffic even partially reflects Autobytel's level, the car companies and dealers are likely to pour large amounts into radio ads. As for valuation, the analysts remarked, “NXST [is trading] at 7.7x average of '10E & ‘11E EBITDA vs. 8.9% growth. Auto surge, e-media, & retrans should boost revenue & FCF, trim debt in ‘11E.”