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Investing.com – Fox Corp stock (NASDAQ:FOXA) traded 3.5% higher Monday following an upgrade from UBS UBS to buy with a target of $50.
Analyst John Hodulik was earlier neutral on the stock and had a target of $42. The stock touched a high of $39.10 in morning trading.
UBS said among traditional media companies, Fox is best placed to benefit from an acceleration in sports betting. According to reports, he also referred to Fox’s strong position among pay TV providers with its focus on sports and news.
Hodulik sees potential increases to Fox’s earnings before interest, taxes, depreciation and amortization estimates from a rising renewal cycle, strong spending on political advertisements and the Super Bowl as well as a reset in NFL costs. The analyst also sees the company as well positioned to drive stable-to-growing profits over the long term as peers face more challenges.
For the third quarter ended September, Fox reported a 12% jump in total quarterly revenue, to $3.05 billion. Quarterly net income of $708 million compared to the $1.12 billion reported in the prior year quarter. Profit was lower due to the absence of a $462 million gain in the prior year quarter which was cash received from Disney for Fox’s prepayment of its share of the tax liabilities resulting from Disney’s divestiture of certain Twenty-First Century Fox assets.
