Fox Corp. downgraded to Underperform from Buy at BofA

BofA downgraded Fox Corp. (FOXA) (FOX) to Underperform from Buy with a price target of $45, down from $80. The firm’s prior bullish view was driven by Fox’s asset mix, which is biased to sports and news. However, BofA views Fox as the most exposed stock in its media coverage to the upcoming NFL renewal. While there are many permutations of potential deals, assuming a 1.5-time average annual value step-up and all else equal, there is about 22% downside risk toits FY27E EBITDA estimate, the analyst tells investors. With about a 27% decline since January 6, the market has reflected some of this risk in recent weeks, but the firm believes the stock will remain challenged until there is certainty with the NFL, the analyst added.