Goldman Sachs Upgrades News Corp. (NWSA) to Buy, Says Shares are Cheap

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Goldman Sachs upgraded News Corp. (NASDAQ: NWSA) from Neutral to Buy with a price target of $24 (up from $21), suggesting 23% upside to current levels.

The firm is calling News Corp one of the cheapest stock in their coverage based on CY13 earnings, which shows shares trading at 10.6X). This cheap valuation comes despite the company having among the fastest EPS growth, or 20% CY11-13E CAGR.

"We see earnings growth being driven by new distribution deals (retrans, reverse retrans, cable nets) and by share repurchases from deploying excess balance sheet liquidity," the analyst comments.


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 $19.56 yesterday, with a 52 week range of $13.38-$19.84.

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