Needham & Company Maintains a 'Buy' on News Corp. (NWSA); Q4 ROIC Analysis
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Price: $33.80 +1.78%
Rating Summary:
19 Buy, 4 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Rating Summary:
19 Buy, 4 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Trade NWSA Now!
Needham & Company maintains a 'Buy' on News Corp. (NASDAQ: NWSA) price target of $27.00.
Analyst, Laura Martin, said, "There is typically an 80-90% statistical correlation between forward-year ROICs and valuations (share prices) in the media space. Most of Wall St closely follows the income statement, ie, the numerator. In this quarterly report, we analyze the denominator - trends in assets intensity, capital allocation, working capital changes, TV and film investments, and free cash flow."
"We believe that NWSA’s ROIC increased by approximately 270 basis points from 8.1% in FY11 to 10.8% in FY12. This ROIC increase is one of the largest of our covered companies. NWSA’s WACC should remain at about 10.1%, by our estimates."
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 $23.13 yesterday, with a 52 week range of $14.72-$24.05.
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Analyst, Laura Martin, said, "There is typically an 80-90% statistical correlation between forward-year ROICs and valuations (share prices) in the media space. Most of Wall St closely follows the income statement, ie, the numerator. In this quarterly report, we analyze the denominator - trends in assets intensity, capital allocation, working capital changes, TV and film investments, and free cash flow."
"We believe that NWSA’s ROIC increased by approximately 270 basis points from 8.1% in FY11 to 10.8% in FY12. This ROIC increase is one of the largest of our covered companies. NWSA’s WACC should remain at about 10.1%, by our estimates."
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 $23.13 yesterday, with a 52 week range of $14.72-$24.05.
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