Nomura Securities Maintains a 'Buy' on News Corp. (NWSA) After More 'Good News'
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Price: $33.21 +0.48%
Rating Summary:
19 Buy, 4 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
19 Buy, 4 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade NWSA Now!
Nomura Securities maintains a 'Buy' on News Corp. (NASDAQ: NWSA) price target of $23.00.
Analyst, Michael Nathanson, commenting on News Corp's confirmation that it is considering a restructuring plan to split into two separately traded business units. The split would consist of Paper (newspapers, magazines and books) and Entertainment/Video.
Nathanson said, "While the decision has not been finalized, we see this development as another significant positive step to an already strong News Corp story. Ironically, we believe last year’s failed bid to acquire its remaining BSkyB stake has proved to be an unexpected defining moment."
The Nomura analyst has broken the two units down and renamed them Good NWS and Bad NWS. Good NWS would have approx. $26.6 bln in revs for FY13 and operating profit of $5.8 bln. Using in-line multiples with Disney (NYSE: DIS), the standalone Good NWS would be worth $23/share. The Bad NWS would be left with about $0.15 for FY13 EPS. That unit would be worth $1 share.
All totaled, A combined entity should be worth $24/share. With some maneuvering of cash, share buybacks and EBIT growth, Nathanson sees News Corp as one of the most attractive media stocks.
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 $20.09 yesterday, with a 52 week range of $13.38-$20.70.
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Analyst, Michael Nathanson, commenting on News Corp's confirmation that it is considering a restructuring plan to split into two separately traded business units. The split would consist of Paper (newspapers, magazines and books) and Entertainment/Video.
Nathanson said, "While the decision has not been finalized, we see this development as another significant positive step to an already strong News Corp story. Ironically, we believe last year’s failed bid to acquire its remaining BSkyB stake has proved to be an unexpected defining moment."
The Nomura analyst has broken the two units down and renamed them Good NWS and Bad NWS. Good NWS would have approx. $26.6 bln in revs for FY13 and operating profit of $5.8 bln. Using in-line multiples with Disney (NYSE: DIS), the standalone Good NWS would be worth $23/share. The Bad NWS would be left with about $0.15 for FY13 EPS. That unit would be worth $1 share.
All totaled, A combined entity should be worth $24/share. With some maneuvering of cash, share buybacks and EBIT growth, Nathanson sees News Corp as one of the most attractive media stocks.
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 $20.09 yesterday, with a 52 week range of $13.38-$20.70.
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