Bank of America Securities analyst Jessica Reif Ehrlich reiterated a Buy rating on Fox (FOXA – Research Report) yesterday and set a price target of $60.00.
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Jessica Reif Ehrlich has given her Buy rating due to a combination of factors, primarily driven by Fox’s strong financial performance in the third quarter. The company reported a significant increase in total revenue, surpassing expectations with a 27% year-over-year growth, and demonstrated better-than-expected advertising revenue and EBITDA margins. These results were bolstered by improved affiliate revenue growth and a notable performance from Fox News, which has attracted over 200 new advertisers since the election.
Additionally, Fox’s strategic initiatives, such as the launch of the new OTT service, Fox One, and the growth of Tubi, which appeals to a younger audience, are seen as complementary to its portfolio. The company’s focus on reaching viewers outside the traditional linear ecosystem without directly competing with existing partners is viewed positively. Furthermore, the analyst raised estimates for fiscal year 2025, reflecting confidence in Fox’s future revenue, EBITDA, and free cash flow, reinforcing the Buy rating and a price objective of $60.
In another report released yesterday, CFRA also maintained a Buy rating on the stock with a $59.00 price target.
FOXA’s price has also changed moderately for the past six months – from $46.900 to $52.420, which is a 11.77% increase.