Analyst Note| Neil Macker, CFA |
Sinclair Broadcast Group posted a strong first quarter as revenue and EBITDA beat FactSet consensus. Both it and Nexstar saw a recovery in core advertising as COVID-19 cases decline and economic conditions normalize. This surprise gain combined with distribution revenue growth in the local business segment offset the expected drop in political advertising revenue with the absence of political elections in 2021. We are maintaining our no-moat rating and $30 fair value estimate.