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BofA Is 'Holding The Line' At 21st Century Fox

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In a report published Thursday, BofA Merrill Lynch analysts maintained a Buy rating on Twenty-First Century Fox, Inc (NASDAQ: FOXA), with a price objective of $39.

The analysts expect the company to generate "flattish" revenue growth in F3QE. There could be a "mid-single digit decline in OIBDA. Some of the healthy gains at Film and Cable Networks may be offset by continued "ratings headwinds" at Television and an increase in expenses at Cable Networks.

In the report BofA Merrill Lynch noted the key drivers as:

  1. favorable theatrical comps at the Studio (Kingsman: The Secret Service, Taken 3 and Night at the Museum: Secret of the Tomb vs. last year’s Son of God)
  2. favorable home entertainment comps at the Studio (Night at the Museum: Secret of the Tomb, Exodus: Gods and Kings and Gone Girl vs. last year’s 12 Years a Slave and The Book Thief)
  3. low-mid-single-digit Cable Networks contribution
  4. soft Television performance

The analysts also expect Twenty-First Century Fox to repurchase $1.6bn worth of shares during the quarter.

The EPS estimates for F3Q and FY15 have been raised from $0.42 to $0.41 (to reflect BSkyB softness) and from $1.72 to $1.71 (on flow through), respectively.

Latest Ratings for FOXA

DateFirmActionFromTo
Jan 2017Wells FargoUpgradesMarket PerformOutperform
Dec 2016Brean CapitalUpgradesHoldBuy
Dec 2016Telsey Advisory GroupDowngradesOutperformMarket Perform

View More Analyst Ratings for FOXA
View the Latest Analyst Ratings

Posted-In: BofA Merrill LynchAnalyst Color Reiteration Analyst Ratings

 

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