Brean Capital Remains Sidelined on 21st Century Fox (FOXA) Following 10-K Release

August 15, 2016 10:27 AM EDT
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Price: $25.83 +2.22%

Rating Summary:
    23 Buy, 13 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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Brean Capital maintained a Hold rating on 21st Century Fox (NASDAQ: FOXA) following the company's recently released 10-K. Fox News is at 91 million subscribers, down from 94 million in FY15 and 99 million in FY14. Sports Programming Commitments increased to $57 billion, up from $49 billion last year, and exceeds Disney's (DIS) $53 billion. Management is fulfilling its commitment to finish its $5 billion buyback from last year, then repurchases are expected to moderate dramatically. Brean is projecting only $1 billion of buybacks for the fiscal year.

Analyst Alan Gould commented, "While we like FOX shares more now that consensus estimates have come down and f/x should be less of a headwind this year (notwithstanding the translation of Sky earnings), we still prefer TWX ($80.55 Buy) and CBS ($52.35 Buy), which we believe are growing quicker and CBS is trading at a lower multiple (due to the potential VIA $42.91, Buy acquisition fear). Our fair value estimate on FOX is $31, a 30% discount to our private market value estimate, or about 15.5x our CY17 EPS estimate of $2.02. Fox continues to trade at the largest discount to estimated private market value in the group."

For an analyst ratings summary and ratings history on 21st Century Fox click here. For more ratings news on 21st Century Fox click here.

Shares of 21st Century Fox closed at $26.02 yesterday.

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