Balanced View on Fox: Solid Earnings Momentum and Buybacks Offset by Secular TV Headwinds, Justifying a Hold Rating

Doug Creutz, an analyst from TD Cowen, maintained the Hold rating on Fox. The associated price target is $65.00.

Doug Creutz has given his Hold rating due to a combination of factors that balance Fox’s improving fundamentals with a valuation he views as fair rather than compelling. The company delivered quarterly results that surpassed both his and the Street’s expectations, with stronger-than-anticipated advertising performance at both Cable Networks and Television, aided by record revenue at Tubi, solid news pricing, and robust sports ratings. Affiliate fees also grew slightly faster than forecast, and disciplined cost control—particularly lower sports costs—helped drive a sizable beat on EBITDA and EPS. Management’s substantial share repurchases further underscore confidence in the business and support earnings per share, while ongoing digital investments position Fox for longer-term growth.

At the same time, Creutz sees reasons for caution that temper the otherwise positive near‑term picture. While subscriber losses in the pay‑TV ecosystem are decelerating and the rise of skinny bundles is helping, the underlying secular pressure on traditional TV distribution has not disappeared. EBITDA still declined year over year in certain segments despite the beat versus estimates, reflecting higher programming and digital investment costs. With his price target raised from $55 to $65 to reflect better trends and updated FY26 estimates, he views the current share price as roughly aligned with Fox’s risk‑reward profile, leading him to maintain a neutral Hold stance rather than move to a more aggressive rating.

Creutz covers the Communication Services sector, focusing on stocks such as Take-Two, Live Nation Entertainment, and Walt Disney. According to TipRanks, Creutz has an average return of 14.9% and a 62.10% success rate on recommended stocks.

In another report released yesterday, TipRanks – Google also downgraded the stock to a Hold with a $76.00 price target.