Fox (FOXA – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. 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 several positive factors influencing Fox’s financial outlook. The company is expected to continue its positive momentum into FY26, particularly due to its strong portfolio in live news and sports, which are outperforming other segments in the linear bundle. Additionally, the anticipated minimal investment required for Fox’s new direct-to-consumer service further supports this positive outlook, as existing technology infrastructure reduces the need for significant spending.
Another reason for the Buy rating is the expected improvement in Tubi’s financial performance, with projected losses likely to decrease in FY26. This improvement is attributed to a favorable gross margin on incremental revenue and manageable investment costs for the Fox One launch. Furthermore, Fox’s valuation benefits from its stake in Flutter and the potential value from its FanDuel option, alongside an improving advertising environment and a robust balance sheet. These factors collectively contribute to the raised price objective of $65, reinforcing the Buy recommendation.