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On Monday, CFRA analyst Kenneth Leon increased the price target on FOX Corp. shares (NASDAQ: FOXA) to $59 from the previous $57, while reiterating a Buy rating. According to InvestingPro data, FOX Corp. currently trades at an EV/EBITDA of 7.83x and maintains a perfect Piotroski Score of 9, indicating strong financial health. Leon’s revision reflects structural market changes and aligns with the forward Total (EPA:TTEF) Enterprise Value/Earnings Before Interest, Taxes, Depreciation, and Amortization (TEV/EBITDA) multiple of 8.44 times that of direct peers. The new target is also based on a forward Price/Earnings (P/E) ratio of 14.8 times the projected earnings per share (EPS) for the fiscal year ending in June 2026.
Leon adjusted the EPS estimates for FOX Corp., raising the fiscal year 2025 EPS forecast by $0.15 to $4.55 and reducing the fiscal year 2026 projection by the same amount to $4.00, aligning with the consensus. These adjustments come after FOX Corp.’s third-quarter fiscal year 2025 performance, where the company reported adjusted EBITDA of $856 million and surpassed expectations with an adjusted EPS of $1.10, which was $0.04 higher than consensus. Revenue for the quarter was a robust $4.37 billion, marking a 27% year-over-year increase. InvestingPro analysis reveals the company’s impressive financial health score of 3.16 (rated as "GREAT"), with 8 additional exclusive insights available to subscribers.
The significant revenue growth for the quarter was attributed to a 65% year-over-year increase in advertising revenue, largely driven by the broadcasting of Super Bowl LIX and the continued success of Tubi, FOX Corp.’s free ad-supported streaming service. Based on these results, Leon has set annual projections for FOX Corp. with adjusted EBITDA reaching $3.5 billion in fiscal year 2025 and $3.2 billion in fiscal year 2026, alongside revenues of $16.0 billion and $15.5 billion for the respective years.
FOX Corp.’s solid financial performance in the third quarter of fiscal year 2025, coupled with the analyst’s adjusted projections and increased price target, reflect a positive outlook for the company’s stock as it continues to navigate the evolving broadcast and pay TV markets.
In other recent news, Fox Corporation reported its financial results for the third quarter of 2025, surpassing market expectations. The company achieved an adjusted earnings per share (EPS) of $1.10, exceeding the projected $0.89. Revenue reached $4.37 billion, beating the anticipated $4.14 billion. This strong performance was driven by a significant 40% revenue growth in its Television segment. The launch of Fox One, a new streaming service aimed at cord-cutters, and the continued expansion of Tubi contributed to this growth. Additionally, Fox Corporation announced record quarterly free cash flow of over $1.9 billion. Analyst discussions during the earnings call focused on the strategic focus on Fox One and its potential to capture the cord-cutter market. Fox’s new direct-to-consumer streaming service, Fox One, is set to launch before the football season this fall, with pricing aligned with its wholesale rates.
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