Needham & Company Starts 21st Century Fox (FOXA) at Buy; One of Fastest Growers

July 3, 2013 8:48 AM EDT Send to a Friend
Get Alerts FOXA Hot Sheet
Price: $35.21 +0.43%

Rating Summary:
    21 Buy, 3 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 18 | New: 41
Trade FOXA Now!
Join SI Premium – FREE
Needham & Company initiates coverage on 21st Century Fox (NASDAQ: FOXA) with a Buy rating and $36 price target.

Analyst Laura Martin expects 21st Century Fox to be one of the fastest growers in the content space. She sees a PEG ratio is 1.3, well below the 1.5-1.7 for most of its peers. Notably, at an industry average PEG ratio of 1.6x, FOXa would trade at $35/share.

"FOXa is now a global pure play content company," the analyst comments. "With new distribution platforms proliferating and without the capital intensity of a print business, FOXa's EV/EBITDA multiple should be able to expand by 1-2 turns. Every EBITDA multiple point of expansion adds $3.50/share (10% upside) to FOXa's share price, by our calculation."

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 $29.21 yesterday.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

New Coverage

Related Entities

Needham & Company

Add Your Comment