Pacific Crest Starts 21st Century Fox (FOXA) at Overweight

Pacific Crest initiated coverage on 21st Century Fox (NASDAQ: FOXA) with an Overweight rating and a price target of $32. Analyst Andy Hargreaves noted is exposure to sports programming.

"We believe Fox's tent-pole cable assets and sports programming should provide sustainable pricing power in a variety of environments. This, along with improved international profitability, should drive solid profit growth and sustain a premium multiple," said Hargreaves.

"We expect the transition to on-demand viewing to decrease the relative value of general entertainment programming and, therefore, increase the relative value of major sports. The Fox network, its regional sports networks (RSNs) and FS1 make up most of company revenue, which makes FOXA a significant play on the continued growth of major sports. We view this positively, as we believe Fox's cable networks and RSNs are key properties that should provide pricing power with distributors, despite the potential for changes to the bundle and increases in on-demand viewing," added the analyst.

For an analyst ratings summary and ratings history on 21st Century Fox click here. For more ratings news on 21st Century Fox click here.

Shares of 21st Century Fox closed at $28.57 yesterday.

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