Fox, the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Jessica Reif Ehrlich from Bank of America Securities reiterated a Buy rating on the stock and has a $65.00 price target.
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Jessica Reif Ehrlich’s rating is based on Fox’s strong financial performance in the fourth quarter, which exceeded expectations in both revenue and EBITDA. The company reported a 6.5% year-over-year increase in total revenue and a 21% rise in EBITDA, surpassing initial estimates. Key contributors to this success included better-than-expected affiliate and advertising revenue growth, as well as improved EBITDA margins. Additionally, Fox’s adjusted EPS and free cash flow also outperformed expectations, further solidifying its financial standing.
Despite some concerns about future digital investments and their impact on FY26, Ehrlich maintains a positive outlook on Fox’s potential. The company’s strategic focus on sports and news, which are less vulnerable to entertainment advertising fluctuations, along with a robust advertising environment and a strong balance sheet, support the Buy rating. Fox’s authorization of a $5 billion share repurchase and an increased dividend also reflect confidence in its financial health and future prospects.
In another report released yesterday, CFRA also upgraded the stock to a Buy with a $60.00 price target.