UPDATE: Citigroup Upgrades News Corp to Buy; Split Highlights Value

Citigroup raised its rating on News Corp

from Neutral to Buy and increased its price target from $22 to $26. Citigroup commented, "News Corp to split into two firms by June 30, 2013. We've dubbed the Publishing centric firm 'New News Corp' (NNC) and the Entertainment centric firm 'Fox Entertainment Group' (FEG). … We expect NNC to see revenue fall 1.4% per year between 2011 and 2014 and EBIT likely fall 3.7% over the same period. FEG, on the other hand, should see its top-line grow 6.5% per year through 2014 and EBIT should grow 16.8% over the same time period." News Corp closed at $22.37 on Wednesday.