Fox stock rating upgraded to Buy by CFRA on strong networks and Tubi growth

Published 05/08/2025, 21:48
Fox stock rating upgraded to Buy by CFRA on strong networks and Tubi growth

Investing.com - CFRA has upgraded FOX Corp. (NASDAQ:FOXA) from Hold to Buy while raising its price target to $60.00 from $59.00, citing the company’s leading broadcast and cable networks alongside its growing Tubi streaming service. The upgrade comes as FOX demonstrates strong financial performance, with revenue growing 15.7% to $16.1 billion in the last twelve months and maintaining healthy profit margins of 34.5%. According to InvestingPro analysis, FOX is currently trading below its Fair Value.

The research firm highlighted FOX’s newly launched Fox One bundled plan, which targets younger, streaming-only households, as a positive strategic move for the company’s future growth prospects.

CFRA projects FOX’s revenue to reach $15.5 billion in fiscal 2026 and $16.5 billion in fiscal 2027, following an expected $16.3 billion in fiscal 2025, with the year-over-year decline in 2026 attributed to FOX not sponsoring the Super Bowl that year.

The analyst raised the fiscal 2026 earnings per share estimate by $0.70 to $4.90 and initiated a fiscal 2027 estimate of $5.10, applying a forward TEV/EBITDA multiple of 8.7x to its fiscal 2026 EBITDA estimate of $7.22 per share.

CFRA noted that FOX shares have a beta of 0.55, indicating lower volatility compared to the broader U.S. equity market, which it views as an additional positive factor supporting the premium valuation.

In other recent news, Fox Corporation reported its fourth-quarter earnings for 2025, exceeding market expectations. The company achieved an earnings per share (EPS) of $1.27, outperforming the anticipated $0.98 by 29.5%. Revenue also surpassed forecasts, reaching $3.29 billion compared to the predicted $3.12 billion, representing a surprise of 5.45%. These results highlight a period of robust financial performance for Fox Corp . Despite the strong earnings and revenue figures, the company’s stock experienced a decline following the announcement. However, there was a slight recovery observed in premarket trading. These developments are part of the recent updates concerning the company’s financial activities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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