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Research Alert: CFRA Lowers Opinion To Hold From Buy On Shares Of Fox Corporation
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Research Alert: CFRA Lowers Opinion To Hold From Buy On Shares Of Fox Corporation
Jun 27, 2025 10:33 AM

01:10 PM EDT, 06/27/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

FOXA has exceptional media assets, but we think the valuation limits upside to our $59 target. Our target is based on a forward TEV/EBITDA of 8.4x, which is near peers and above the five-year average at 7.0x. The shares have a low beta, below the market at 0.53, and the company continues to actively buy back shares. The earnings power of FOXA is somewhat constrained by reduced advertising revenue expected in the Television segment without the Super Bowl next year. In Q3 FY 25 (Jun.), segment results showed weaker EBITDA at $60M versus $145M a year ago. We think Q4 FY 25 and Q1 FY 26 are likely to show a lull in advertising revenue until the NFL starts up in the autumn. We see adjusted EBITDA at $3.5B in FY 25 and $3.2B in FY 26. We kept our FY 25 EPS at $4.55 and raised FY 26 by $0.20 to $4.20. Tubi, a digital streaming platform, realized 35% revenue growth in Q3. Risks are a weak economy, lower TV ratings, and/or runaway costs for future renewal of major league sporting rights.

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