03:55 PM EST, 02/09/2026 (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:
We lower our 12-month target price by $3 to $29, 26x our FY 27 (Jun.) EPS estimate (rolling forward our valuation base from 31x FY 26), reflecting a justified discount to the 29x three-year average forward multiple due to potential risks from AI disruption to digital advertising and content monetization. We lower our FY 26 EPS estimate to $0.99 from $1.04 and keep FY 27's at $1.13. FQ2 (Dec-Q) results showed total revenue up 5.5% Y/Y and adjusted EBITDA up 9.9% Y/Y, reflecting steady momentum at NWSA's Dow Jones and Digital Real Estate Services segments. We reiterate a Buy opinion, viewing AI risks as overblown given NWSA's strong content moats and diversified revenue streams. We viewed FQ2 EBITDA growth (+9.9% Y/Y) and margins (+70 bps Y/Y) as more stable than consumer discretionary peers, which makes shares' discounted valuation more compelling. Along with accelerated share repurchases ($172M in FQ2) and structural improvements post-Foxtel spinoff, we see potential for a series of positive EPS surprises.