On Thursday, an analyst from Rosenblatt increased the price target for FOX Corp. (NASDAQ:FOXA) shares to $36, a hike from the previous target of $34. This revision comes after the company reported a strong performance in its third fiscal quarter of 2024, surpassing EBITDA expectations despite facing a challenging revenue environment.
The media giant, known for its television networks and broadcasting services, has been navigating the shifting landscape of pay television, where secular headwinds are becoming increasingly evident. However, the company's strategic investments have started to pay dividends, particularly its call option in FanDuel and ownership stake in Flutter (LON:FLTRF) Entertainment. These assets have grown significantly in value and have contributed to the firm's financial success.
Rosenblatt's analyst highlighted the company's ability to outperform in a tough market and has opted to maintain a Neutral rating on the stock. The decision to raise the price target is attributed to the revised upward estimates that reflect FOX Corp's current financial trajectory.
FOX Corp.'s recent financial results have demonstrated resilience in the face of industry challenges, particularly those affecting the pay TV sector. The analyst's comments suggest that while the broader market for traditional television services faces pressure, FOX Corp. has managed to find value in its varied portfolio, particularly in its sports betting and online gaming ventures.
The company's financial health and strategic positioning have been recognized in this latest assessment, setting a new benchmark for its stock value. The updated price target of $36 represents a modest but positive adjustment based on the company's performance and future prospects in its diversified operations.
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