ATVDY - 2021 Is When Nexstar Needs To Show What It's Made Of

• Nexstar's share price has been on an upward trajectory over the last years with only one substantial dip this year, albeit only temporary when COVID-19 hit.
• While other broadcasters, such as European peers, have had revenue and share price declines, Nexstar has been able to grow revenue, which has supported the surge in the share price.
• Nexstar's acquisition of Tribune Media and US election related revenue led to a good performance in 2020, but core advertising revenue is under pressure and operating expenses are rising fast.
• Nexstar's current valuation is somewhat higher than European broadcasters. Better growth can justify this, but it's a challenge for Nexstar to keep showing the same performance in 2021.
• As Nexstar's growth is likely to decelerate next year when the positive impact of Tribune Media and the US elections ends, I'd recommend retail investors to stay on the sidelines.

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