Market Overview

UPDATE: Cowen & Co. Upgrades Fox On Withdrawal Of Time Warner Bid

Share:

Following the announcement that Twenty-First Century Fox (NASDAQ: FOXA) rescinded its bid for Time Warner (NYSE: TWX), Cowen & Co. analyst Doug Creutz upgraded shares of Fox from Underperform to Market Perform and raised the price target from $29 to $35.

Creutz has chosen to move the stock because he believes there will be lingering concern among investors as to the company's capital allocation strategy.

"Fox's 'walk away' makes sense to us whether or not you really believe they have lost interest in pursuing a Time Warner acquisition," Creutz said. "We do not rule out the possibility that talks could [quietly] commence in the future if Time Warner's board begins to feel pressure from investors due to lagging share price. However, we do believe Fox is highly unlikely to make another public, unsolicited offer for Time Warner."

That said, Creutz believes shareholders of companies owned by Rupert Murdoch still face risk related to "acquisition addiction," coupled with the "loaded gun" of excess liquidity.

Latest Ratings for FOXA

DateFirmActionFromTo
Nov 2019MaintainsUnderperform
Sep 2019Initiates Coverage OnUnderperform
Sep 2019MaintainsNeutral

View More Analyst Ratings for FOXA
View the Latest Analyst Ratings

Posted-In: Cowen & Co. Doug CreutzAnalyst Color Upgrades Price Target Analyst Ratings

 

Related Articles (TWX + FOXA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
VIACJP MorganReinstates50.0
NUVASVB LeerinkMaintains92.0
SRPTCantor FitzgeraldMaintains211.0
SRPTPiperJaffrayMaintains210.0
LULUGoldman SachsMaintains219.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

L Brands July Comps Up 6%, Puts Q2 Net 'At High End' Of Guidance

JP Morgan Calls Ctrip/Priceline Deal Mutually Beneficial