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On Tuesday, Loop Capital Markets increased its price target for FOX Corporation (NASDAQ:FOXA) shares, moving from $60.00 to a new target of $62.00, while keeping a Buy rating on the stock. The firm’s analyst, Alan Gould, highlighted FOX’s robust performance in a difficult economic landscape, noting the significant rise in prime time ratings for FOX News and the addition of over 100 new blue-chip advertisers. The company’s strong market position is reflected in its impressive 82.6% return over the past year and current market capitalization of $24.75 billion. According to InvestingPro data, analyst price targets for FOX currently range from $45 to $66.
FOX Corporation’s revenue, nearly 40% of which is derived from advertising, has shown resilience according to Gould. The network’s prime time ratings have jumped by approximately 50% in comparison to two years prior, outpacing all other major networks. This surge in viewership has been accompanied by an influx of new advertisers, suggesting a potential long-term redirection of advertising dollars towards Fox News away from general entertainment networks. InvestingPro analysis reveals the company has achieved a perfect Piotroski Score of 9, indicating exceptional financial strength, with total revenue reaching $15.18 billion in the last twelve months.
The company’s strategic focus on news and sports content, without the burden of general entertainment networks, has also contributed to its financial success. This direction has allowed FOX to increase its affiliate revenue while its peers are experiencing declines. Gould also mentioned the Murdoch family’s governance issues, suggesting that they could influence the future structure of Fox.
Despite the stock’s multiple expanding, Gould still finds it attractive, noting that it trades at 7.6 times the firm’s estimated 2024/2025 EBITDA. Loop Capital’s continued endorsement of FOX stock as a Buy reflects confidence in the company’s current strategy and market position.
In other recent news, FOX Corporation announced that Super Bowl LIX, broadcasted on FOX and Tubi, generated over $800 million in advertising revenue, marking a record for the event. The game set a new viewership record with an average audience of 127.7 million viewers across various platforms, including television and digital. Additionally, FOX’s pregame coverage and the halftime show featuring Kendrick Lamar also achieved record viewership numbers. In terms of financial projections, UBS raised FOX Corp’s stock price target to $63, maintaining a Buy rating, citing the company’s strong position in the evolving video landscape and positive trends in affiliate and advertising. UBS expects a 14% increase in revenue and a 20% rise in EBITDA for fiscal year 2025, with continued growth anticipated. BofA Securities also maintained a Buy rating for FOX Corp, highlighting the resilience of its portfolio, particularly in live content like news and sports. The analysis suggests a positive revenue trajectory for FOX, with cable revenue estimated to grow by 4% and television segment growth projected at 34%. Furthermore, FOX Corp CEO Lachlan Murdoch discussed plans for a new streaming service led by former Apple (NASDAQ:AAPL) TV+ executive Pete Distad, aiming to reach cord-cutters through both traditional cable and direct-to-consumer services.
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