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

July 3, 2013 8:48 AM EDT
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Price: $30.29 +1.20%

Rating Summary:
    23 Buy, 14 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 11 | Down: 22 | New: 54
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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.

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