Needham & Company Maintains a 'Hold' on News Corp. (NWSA); ROIC Analysis

Needham & Company maintains a 'Hold' on News Corp. (NASDAQ: NWSA).

Analyst, Laura Martin, said, "There is currently an 89% correlation between FY12E projected ROICs and media industry share prices. Wall St closely follows the income statement (ie, the numerator). In this report, we analyze the denominator - trends in assets employed, capital intensity, and free cash flow...We estimate that NWSA’s ROIC will increase by approximately 100 basis points from 8.1% in FY11 to 9.1% in FY12E. This increase is right in the middle of our covered companies. NWSA’s WACC should remain at about 10.1%, by our estimates."

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

Shares of News Corp. closed at $19.83 yesterday.

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