UBS Starts News Corp (NWS) at Neutral; Attractive Assets, but Moderating Growth

UBS initiates coverage on News Corp (NASDAQ: NWS)(Class B) with a Neutral. PT $19.00.

UBS analyst says, "We think News Corp. will post above-average advertising and affiliate fee growth moving through 2012. However, given our assumption of slower ad growth and a more acrimonious environment for affiliate fees/retrans at the networks, multiple expansion from current levels may be a challenge. The stock is among the cheapest in the group, largely due to the asset mix, and our Neutral rating reflects our view that growth in the cable/broadcast segments is discounted in the stock."

"Our F’12 revenue, OI and EPS estimates are $34.9B, $5.5B, and $1.36, respectively. We believe we are below consensus due to our more cautious outlook on the ad market. We expect a solid F1Q12 on Wednesday when NWS reports."

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 $18.07 yesterday.

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