Needham & Company Upgrades News Corp. (NWSA) to Buy; Potential Spin-off Would Add $5/Share
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Price: $33.09 +0.67%
Rating Summary:
19 Buy, 4 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
19 Buy, 4 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade NWSA Now!
Needham & Company upgraded News Corp. (NASDAQ: NWSA) from Hold to Buy with a new price target of $27.00.
Analyst, Laura Martin, said, "We are upgrading NWSA based on the following analytical building blocks: A potential spin-off would add more than $5/share of value to NWSA, in our view. We believe that NWSA earnings estimates are too low for FY13 owing to higher affiliate fees tied to recent negotiations. We are introducing a FY13E EPS estimate of $1.72, above consensus."
Martin also noted that News Corp was dealing with non-consolidated assets rather aggressively over the past year. This in effect simplifies valuation, raised EBITDA, and should push out multiple expansion.
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 $21.76 yesterday, with a 52 week range of $13.38-$21.89.
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Analyst, Laura Martin, said, "We are upgrading NWSA based on the following analytical building blocks: A potential spin-off would add more than $5/share of value to NWSA, in our view. We believe that NWSA earnings estimates are too low for FY13 owing to higher affiliate fees tied to recent negotiations. We are introducing a FY13E EPS estimate of $1.72, above consensus."
Martin also noted that News Corp was dealing with non-consolidated assets rather aggressively over the past year. This in effect simplifies valuation, raised EBITDA, and should push out multiple expansion.
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 $21.76 yesterday, with a 52 week range of $13.38-$21.89.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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