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On Tuesday, Loop Capital Markets increased its price target on FOX Corp. (NASDAQ:FOXA) shares from $62.00 to $64.00, while reaffirming a Buy rating on the stock. The firm’s decision comes in the wake of FOX’s strong financial performance, which has consistently surpassed its peers in the linear broadcasting space. According to InvestingPro data, FOX currently trades at a P/E ratio of 12.5, suggesting an attractive valuation relative to its near-term earnings growth potential.
FOX Corp. has outshined its competitors for the fifth consecutive quarter, particularly in affiliate revenue growth. With impressive revenue growth of 15.7% and a market capitalization of $22.9 billion, the company’s financial health score on InvestingPro is rated as "GREAT." This success is attributed to the company’s strategic focus on news and sports content, which has proven to be a differentiator in the market. The company’s flagship network, Fox News, achieved its highest quarterly share of cable news ever during the last quarter, and its weekday primetime ratings were second only to one of the broadcast networks.
The ratings for Fox News saw a significant increase, with a 63% rise in the March quarter followed by a 35% jump in April. Despite these impressive numbers, Loop Capital anticipates more challenging comparisons in the future, particularly with their conservative cable advertising estimates for fiscal year 2026. FOX’s strong operational execution has contributed to an impressive one-year total return of 59.8%. For deeper insights into FOX’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis of the company’s financial health and future potential.
Loop Capital has also adjusted its fiscal year 2025 earnings per share (EPS) estimate for FOX Corp. upward to $4.50 from $4.37. The revised price target and EPS forecast reflect expectations of increased contributions from Fan Duel and higher cash estimates. The firm’s analysis underscores the strength of Fox’s performance and execution in its core areas of news and sports broadcasting.
In other recent news, FOX Corp. reported a strong financial performance for the third quarter of fiscal year 2025, surpassing market expectations. The company achieved an adjusted earnings per share (EPS) of $1.10, exceeding the forecasted $0.89, while revenue reached $4.37 billion, surpassing the anticipated $4.14 billion. The significant revenue growth, a 27% year-over-year increase, was largely driven by a 65% rise in advertising revenue, attributed to the Super Bowl broadcast and the success of Tubi, FOX Corp.’s streaming service. CFRA analyst Kenneth Leon raised the company’s stock price target to $59 from $57, maintaining a Buy rating, following these results. Leon adjusted the fiscal year 2025 EPS forecast to $4.55, reflecting FOX Corp.’s strong quarterly performance. The company also launched a new streaming service, Fox One, aimed at cord-cutters, adding to its digital platform offerings. FOX Corp.’s strategic focus on digital platforms and live sports content continues to position it favorably in the competitive media landscape.
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