Fox Corporation: Solid Fundamentals and Streaming Momentum Offset by Structural Linear TV Headwinds, Justifying Hold Rating

Thomas Yeh, an analyst from Morgan Stanley, maintained the Hold rating on Fox. The associated price target was raised to $77.00.

Thomas Yeh has given his Hold rating due to a combination of factors that balance Fox’s operational strengths with structural challenges in the U.S. TV landscape. He highlights that Fox continues to post solid advertising results, particularly in live sports and news, which have outpaced expectations and driven growth in both the TV and cable segments. The company’s streaming platform Tubi is showing healthy momentum, including year-over-year revenue expansion and sustained EBITDA profitability, reinforcing Fox’s digital optionality. Additionally, moderating subscriber losses and solid affiliate fee growth, helped by initiatives such as Fox One and the potential from emerging skinny bundles, support the view that Fox can manage through pay-TV industry pressures.

At the same time, Yeh recognizes that Fox operates within a secularly pressured linear TV ecosystem, where cord-cutting and shifts in viewing behavior cap long-term upside. His valuation, reflected in a modestly increased price target of $77 based on roughly 7x forward EBITDA, suggests that much of Fox’s relative resilience and balance sheet strength—highlighted by a sizable share repurchase program funded by robust free cash flow—is already reflected in the current share price. While he sees Fox as fundamentally sound and better positioned than many peers, these ongoing structural risks limit conviction for a more aggressive rating. As a result, he maintains an Equal Weight (Hold) stance, viewing the risk/reward as balanced at current levels.

In another report released today, Barclays also maintained a Hold rating on the stock with a $63.00 price target.