Barclays Maintains an 'Equalweight' on News Corp. (NWSA); Value Hunter: New Unit Comparisons

June 29, 2012 12:53 PM EDT
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Price: $12.05 --0%

Rating Summary:
    19 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Barclays maintains an 'Equalweight' on News Corp. (NASDAQ: NWSA) price target of $25.00 (from $23.00).

Analyst, Anthony DiClemente, reiterates his initial view "Rupert Murdoch: Value Hunter", and thinks the spin-off will discount the larger new company, and contain the liabilities in the smaller company.

As far as valuation goes, DiClemente sees the publishing unit at4.5x EBITDA multiple, about in-line with the New York Times (NYSE: NYT). He values the entertainment business at 8-9x 2012 EV/EBITDA and a good comparable is Disney (NYSE: DIS). However, Disney may trade slightly higher than that given the benefits of ESPN and Theme Parks.

For an analyst ratings summary and ratings history on News Corp. click here. For more ratings news on News Corp. click here.

Shares of News Corp. closed at $21.99 yesterday.

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