12:24 PM EDT, 04/03/2024 (MT Newswires) -- Fox (FOXA, FOX) is likely to see double-digit EBITDA growth in fiscal year 2025 as headwinds and tough comparables start to ease, UBS Securities said in a note emailed Wednesday.

UBS expects continued moderate single-digit growth in affiliate revenues and improved core advertising, excluding sports timing, in Q3, adding that "we are updating our [Q3] estimates to reflect better costs while our full-year [estimates] are largely unchanged."

Total affiliate growth is expected to be around 4%, with a slight decrease in total advertising due to the absence of major sports events, UBS said.

Fox's business remains resilient compared to peers but trades at a discount, UBS said. "[Fox] is better positioned than peers given its focus on live TV programming/strong [balance sheet] & expect a return to [double-digit] EBITDA growth in [fiscal year 2025 estimate]," it added.

Fox can expect slight affiliate growth and reduced cable advertising amid tough sports competition, yet UBS foresees improved core advertising on TV despite fewer NFL games, supported by strong affiliate pricing.

UBS has a buy rating on Fox with a 12-month price target of $44.

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