11:25 AM EST, 12/17/2024 (MT Newswires) -- Fox's (FOX) fiscal Q2 is expected to benefit from a record political cycle and strong sports demand, UBS Securities said in a note Monday.

"We are increasing our estimates to reflect higher political advertising," UBS said. "This aligns with commentary at our recent conference, which suggested this year's political cycle will exceed four years ago vs. our prior estimate for flat."

The bank said it now forecasts total ad growth of 14% year over year, with Tubi growth, solid sports spend, political ad and strong cable ratings helping to offset softness in entertainment.

UBS said it raised its earnings before interest, taxes, depreciation and amortization estimates for Fox to $608 million in fiscal Q2 and to $3.33 billion in fiscal 2025 from its prior forecast of $571 million and $3.27 billion, respectively.

UBS maintained the company's buy rating and $50 price target.

Fox shares were up 3% in recent Tuesday trading.

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