Fox Corp to benefit from higher political advertising, Tubi strength

Sinclair

25/09/2024 16:21

** J.P. Morgan raises PT on broadcaster Fox Corp  FOXA.O  to
$41 from $38
    ** Brokerage lifts FY profit forecast citing a pick-up in
political advertising at Television in Q2, following similar
fundraising and guidance raises from broadcast groups such as
Sinclair  SBGI.O  
    ** Says Q1 will also benefit from strong advertising and
viewership trends at news and sports, along with strength at
Tubi streaming service
    ** BofA hikes PT to $50 from $45, signals October as the
strongest month for political advertising; says FOXA is on track
this year to exceed the $230 mln its local TV stations made in
last presidential election cycle
    ** Notes that Fox has the least exposure to entertainment
advertising given their asset mix, which is biased towards
sports and news
    ** "We expect Fox is targeting adjacencies to sports/news
and would not rule out cross-border M&A given their history in
international markets," says BofA analyst Jessica Ehrlich
    ** Stock is up 41% YTD, including session's moves
    

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))