Fox's Growth Prospects, Competitive Valuation Stand Out Against Disney, Paramount; Analyst Sees Momentum With Tubi, Sports
Portfolio Pulse from Anusuya Lahiri
BofA Securities analyst Jessica Reif Ehrlich maintains a Buy rating on Fox Corp (NASDAQ:FOX) (NASDAQ:FOXA), raising the price target to $40 from $34, citing growth prospects and competitive valuation against Disney (NYSE:DIS) and Paramount Global (NASDAQ:PARA) (NASDAQ:PARAA). Ehrlich highlights Fox's positioning for earnings acceleration in fiscal 2025, driven by an improving advertising landscape, momentum at Tubi, and strength in Live News and Sports. Fox's valuation offers downside protection, trading at ~6x calendar 2025 EV/EBITDA, below peers. The analyst also raised fiscal 2024 and 2025 EBITDA and EPS forecasts.
May 09, 2024 | 7:12 pm
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POSITIVE IMPACT
Fox Corp's Buy rating reaffirmed by BofA Securities with a raised price target to $40, highlighting strong growth prospects and competitive valuation.
The upgrade in price target and positive outlook from a reputable analyst could lead to increased investor confidence and potential stock price appreciation in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 95
POSITIVE IMPACT
Fox Corp's Buy rating and price target increase to $40 by BofA Securities underscore its growth potential and attractive valuation.
Similar to FOX, the positive analyst coverage for FOXA, including the price target increase, is likely to positively influence investor sentiment and stock price in the near term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 95
NEGATIVE IMPACT
Disney, compared unfavorably to Fox in terms of valuation and growth prospects by BofA Securities, may face short-term investor scrutiny.
The comparison suggesting Disney's valuation and growth prospects are less favorable than Fox's could lead to negative investor sentiment towards Disney in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEGATIVE IMPACT
Paramount Global's valuation and growth prospects are deemed less competitive compared to Fox by BofA Securities, potentially impacting investor perception.
The analyst's view that Paramount Global is less competitively valued than Fox could negatively affect its stock price as investors reassess its growth prospects.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75