11:34 AM EDT, 08/07/2024 (MT Newswires) -- Fox (FOXA) owns "well positioned networks anchored in sports and news" and is also "investing prudently in streaming," Morgan Stanley said Wednesday in a note to clients after the company's fiscal Q4 results.

The media company on Tuesday reported that adjusted earnings rose to $0.90 a share for the quarter through June 30 from $0.88 a year earlier, above the $0.81 consensus compiled by Capital IQ. Revenue increased 2% to $3.09 billion, just shy of Wall Street's $3.1 billion forecast.

Fox is also conducting a "highly accretive buyback," Morgan Stanley said, adding that "despite the successful playbook, however, when adjusting for cyclical factors Fox [adjusted] EBITDA is not growing as industry headwinds have continued to build."

But Fox is also the "best performing media stock" backed by a "positive revision cycle (better ad trends) after a tough 2023," the note said.

Morgan Stanley kept its equal weight rating on Fox and raised the company's price target to $38 from $35.

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