Fox Corporation (FOX) was lifted to Buy from Neutral at Bank of America on Thursday, with the bank saying the company is well positioned for FY25. BofA also raised its price target for the stock to $40 from $34 per share.
The firm noted that FY24 was set to be a challenging year given the extremely difficult comparisons to FY23, which included the Super Bowl, the World Baseball Classic, a midterm political cycle, and the World Cup.
However, "Fox is now well-positioned to accelerate earnings in FY25."
Their bullish thesis is largely predicated on an improving advertising backdrop and the company's healthy balance sheet.
Analysts believe Fox should benefit from "a Presidential, Congressional and ballot issues election cycle in the 2H of CY24, continued momentum at Tubi, the Super Bowl in 2025 and strength in Live News and Sports including major soccer events."
They added that the company's net leverage at 1x "provides optionality including underappreciated assets such as FanDuel's options or FLTR stake that present longer term opportunities in sports betting."