Fox Corporation: Hold Rating Amid Growth Prospects and Valuation Concerns

Morgan Stanley analyst Benjamin Swinburne has maintained their neutral stance on FOXA stock, giving a Hold rating today.

Benjamin Swinburne has given his Hold rating due to a combination of factors impacting Fox Corporation. Despite the ongoing challenges faced by linear TV, Fox is expected to achieve growth in both distribution and advertising revenues by FY25. This growth is noteworthy, especially considering the high levels of cord-cutting and the advertising shift towards streaming platforms.
Additionally, Fox’s streaming service, Tubi, is experiencing rapid revenue growth, which enhances the overall growth outlook for the company. However, the sustainability of these trends and the valuation premium of Fox’s shares compared to its competitors remain areas of debate. While Fox’s assets are currently outperforming the competition, the macroeconomic environment and its impact on advertising revenues could influence future performance.

In another report released today, Barclays also maintained a Hold rating on the stock with a $52.00 price target.