FOX Corp. (FOXA) PT Raised to $63 at UBS

UBS analyst John Hodulik raised the price target on FOX Corp. (NASDAQ: FOXA) to $63.00 (from $50.00) while maintaining a Buy rating.

He said, "We believe FOX is well positioned to navigate the evolving video landscape and are increasing our estimates/price target. F2Q results benefitted from cyclical factors but we believe the core outlook for both affiliate and advertising trends is improving. Growth in skinny bundles and more flexible packaging across distributors should benefit FOX's core networks. At the same time, the return of brand advertisers to FOX News and sustained ratings momentum provides a positive indicator for future ad demand/pricing. We now look for 14% revenue and 20% EBITDA growth in F25 (prior UBSe 13%/16%). Cyclical tailwinds will unwind in F26 (lapping political cycle and Super Bowl), but we believe FOX is better positioned than peers to keep profits stable/growing over the long-term and now look for $3.2B/$3.5B+ of EBITDA in F26/F27 (up from $3.0B/$3.3B prior)."

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