Wells Fargo Reiterates Underweight Rating on FOX Corp. (FOXA)

Wells Fargo analyst Steven Cahall reiterated an Underweight rating and $29.00 price target on FOX Corp. (NASDAQ: FOXA).

The analyst commented, "In this lengthier preview we also revisit our out-of-consensus Underweight thesis. While we raise ests. for F4Q24 due to soccer, we think FOXA's affiliate rev risk is under-appreciated as sports moves to streaming, and we're less convinced on M&A."

"We're modestly raising our F4Q24 TV ests., and Adj. EBITDA as a result. We think Fox's soccer rights performed well in the quarter, potentially adding ~+$24mm y/y for Copa + Euro based on viewership (add'l in F1Q25 - details within). We raise Tubi and reduce political for the qtr. Net/net our TV ad growth goes from -1% to +2%, or +$21mm to rev/Adj. EBITDA vs prior. We note FOXA's last 4 qtrs' EBITDA beats vs our model of (going back sequentially):+$42mm, +$83mm, +$51mm, +$80mm."

For an analyst ratings summary and ratings history on FOX Corp. click here. For more ratings news on FOX Corp. click here.

Shares of FOX Corp. closed at $34.12 yesterday.

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