Citi upgrades Nexstar to Buy following recent selloff

Citi last night upgraded Nexstar (NXST) to Buy from Neutral with a price target of $220, down from $252. The firm believes the Street has become too bearish on the Tegna acquisition. It sees $8 per share of potential downside and $73 of potential upside, creating a 9:1 risk-reward for Nexstar. The price target assumes Nexstar sells stations covering 25M homes from divestitures for the Tegna deal, the analyst tells investors in a research note.