Needham & Company downgraded 21st Century Fox (NASDAQ: FOXA) from Buy to Hold while lowering estimates.

Analyst Laura Martin commented, "We lower estimates and downgrade FOXA to Hold from Buy. We lower our FY16 estimates to revenue of $28.0B (from $28.3B), EBITDA of $6.5B (from $6.9B) and Adjusted EPS of $1.75 (from $1.84). Our new EBITDA estimate remains within FOXA guidance. We worry that international, retrans & reverse comp upside drivers are already discounted into the share price, but that the rising costs of original content coupled with the risk that ratings weakness is structural (given FOX’s younger demo target audience) are not. We raise our discount rate to account for growing risk to future FCFs. As an industry, we worry about valuation multiple contraction as content companies risk their 2-revenue stream bundle by moving content toward single revenue stream business models like Netflix, YouTube, CBS.com, etc."

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Shares of 21st Century Fox closed at $27.94 yesterday.