UPDATE: Credit Suisse Initiates Coverage on Nexstar Broadcasting Group with Outperform Rating, $17 PT

In a report published Monday, Credit Suisse Group initiated coverage on Nexstar Broadcasting Group (NASDAQ: NXST) with an Outperform rating and $17.00 price target.

Credit Suisse noted, “We initiate coverage of NXST with an Outperform rating and a $17 target price. We believe NXST is positioned for solid FCF growth that should lead to increasing capital returns as the company benefits from growth in retrans revenue and increased scale through accretive acquisitions. Growth in retrans continues to diversify NXST's revenue mix. After increasing ~65% in 2012, we est. ~10% organic growth in 2013, then ~30% in 2014 driven by 3 key renewals. We expect retrans to increase from 16% of net revenue to over 25% by 2015.”

Nexstar Broadcasting Group closed on Friday at $12.16.