In a report published Friday, Bank of America analyst Jessica Reif Cohen initiated coverage on News Corporation NWSA with a Neutral rating and $16.00 price target.
In the report, Bank of America noted, “We initiate new News Corporation (NWSA) with a Neutral rating and a 12-month price objective (PO) of $16. Our SOTP derived PO implies a CY14E EV/EBITDA multiple of 6.7x, a discount to Media & Entertainment peers due to NWSA's low growth profile, uncertainty surrounding the future profit levels of Newspapers / capital deployment and holdco structure. Although we see substantial value support from cash and visible new media/Pay TV assets (cash + REA + Foxtel all at face value = 82% of the current market cap.), we believe NWSA shares will likely be range bound over the near to medium term until visibility improves.”
News Corporation closed on Thursday at $15.13.
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