Nomura Securities reiterates a 'Buy' on News Corp. (NWSA); Accumulate Shares on Any Weakness

Nomura Securities reiterates a 'Buy' on News Corp. (NASDAQ: NWSA), PT $21.

Nomura analyst, Michael Nathanson, said, "News Corp reported F3Q adjusted EPS of $0.26 (excluding a $125mn pre-tax litigation charge related to Integrated Marketing Services) missing our estimate by a penny and consensus by $0.02. Operating income growth was 1% or $12mn below our estimate, driven by weaker-than-expected Publishing and Sky Italia results offset by upside at Television and Filmed Entertainment. NWS also reiterated its FY11 guidance for OI growth in the low double-digits, in-line with our revised +12.2% estimate, implying growth of at least 40% in F4Q (vs our 48% estimate)."

"Putting the tough Avatar compares behind us for Filmed Entertainment, we anticipate F4Q will be the return of strong results for the company (helped by an extra week) as Sky Italia and Publishing rebound, as well as further strength at Cable Networks and Television. We also anticipate positive BSkyB headlines, which could also help drive the stock higher."

For more ratings news on News Corp. click here and for the rating history of News Corp. click here.

Shares of News Corp. closed at $17.34 yesterday.

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