Bank of America Merrill Lynch Reiterates Buy Rating, $29 PT on News Corporation

In a report published Wednesday, Bank of America Merrill Lynch reiterated its Buy rating and $29.00 price target on News Corporation

. BofA Merrill Lynch noted, “We continue to view NWS' planned June 2013 split into the Fox Group (encompassing the company's Media & Entertainment assets) and News Corporation (housing all Publishing/Education/Australian assets) as a significant positive for shares that can better highlight the above dynamics for investors while improving longer-term growth positioning. We anticipate NWS could file its initial Form 10 within weeks (before calendar year-end), incl. the first glimpse into target capital structures at both entities. More specifically, we expect cash allocations to be dictated by operating needs, dividend/buyback plans (with the former more a possibility in a slow-to-no growth entity) and dry powder for acquisitions. We strongly reiterate our Buy rating and $29 PO (+16% upside).” News Corporation closed on Tuesday at $25.63.