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Pali Research Downgrades News Corporation (NWS) to Sell

January 29, 2009 8:54 AM EST
NWS Hot Sheet
Rating Summary:
    0 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Pali Research downgrades News Corporation (NYSE: NWS) from Buy to Sell. Price target lowered to $5.50 from $12, citing lack of strategic direction from Rupert Murdoch.

Pali analyst says, "While we have long viewed Rupert Murdoch as the most visionary CEO in the media sector and one of the only CEOs willing to make long-term strategic investments (regardless of the near-term earnings impact or public investor views), we are increasing surprised/frustrated with his lack of strategic direction related to News Corp’s television station, newspaper and book publishing assets...Therefore, we are concerned that the News Corp. growth story, propelled by cable networks and Sky Italia, will be far less exciting over the next few years, unless the global economy rapidly recovers and/or News Corp. begins to make the hard decisions to shutter businesses and/or innovate their way out of the downward spiral facing several of its key assets (TV, Newspapers and Books)."

News Corporation is a diversified entertainment company with operations in eight industry segments, including Filmed Entertainment, Television, Cable Network Programming, Direct Broadcast Satellite Television, Magazines and Inserts, Newspapers and Information Services, Book Publishing and Other.

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