Bank of America Securities analyst Jessica Reif Ehrlich has reiterated their bullish stance on FOXA stock, giving a Buy rating on September 26.
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Jessica Reif Ehrlich has given her Buy rating due to a combination of factors that highlight Fox’s strategic positioning and growth prospects. Fox has demonstrated strong performance over the past six years, largely due to its focus on live sports and news, which has insulated it from the challenges faced by other media companies. This strategic focus has allowed Fox to capitalize on the value convergence towards premium live content, enhancing its performance relative to peers and positioning it well for future opportunities, such as retaining valuable sports rights.
Additionally, Fox’s asset Tubi has shown impressive growth, with revenue increasing significantly and the potential for improved margins in the future. This growth, alongside strategic moves like a potential stake in TikTok, positions Fox to benefit from high-growth advertising markets. Furthermore, the trend towards skinny bundles presents an opportunity for Fox to expand its reach, leveraging its strong sports and news portfolio. These factors collectively support the Buy rating, reflecting confidence in Fox’s ability to navigate industry changes and capitalize on emerging opportunities.
In another report released on September 26, Guggenheim also maintained a Buy rating on the stock with a $68.00 price target.