Gabelli Upgrades News Corp. (NWSA) to Buy; Do You Believe In Buybacks?

Gabelli upgraded News Corp. (NASDAQ: NWSA) from Hold to Buy.

Gabelli analyst says, "NWS owns a suite of highly-profitable fast-growing cable networks which now represent 50% of the company’s EBITDA...NWS now trades at 4.0x 2012E EBITDA or 8x 2012E Cable Network EBITDA (assuming the Film, DBS, Publishing, & Broadcast businesses are worth nothing)...We believe the current valuation discount more than compensates investors for NWS specific risks...At current prices, the company’s share repurchase plan should be highly acretive to value....Murdoch is staying as Chairman/CEO which does not surprise us."

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 $13.71 yesterday.

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