Fox Corp Underperform Rating Maintained
BofA Securities reiterated its Underperform rating on Fox Corp (NASDAQ: FOXA) and set a price target of $54 ahead of the company's fiscal fourth‑quarter results. The brokerage raised its revenue estimate for the quarter to $3.64 billion, up from $3.59 billion, while keeping the EBITDA forecast unchanged at $984 million.
BofA projects cable revenue to increase 4.8% year‑over‑year and overall television revenue to rise 17.1%, driven primarily by heightened advertising demand linked to the upcoming FIFA World Cup and new subscriber sign‑ups for Fox’s streaming service Fox One.
The analyst note also highlighted the pending acquisition of Roku, which is expected to close in the first half of 2027. While the deal is expected to broaden Fox’s exposure to the connected‑TV market and generate long‑term revenue and cost synergies, BofA expects the stock to remain in “deal limbo” and range‑bound until the transaction progresses further.
For the full fiscal year 2027, BofA lifted its EBITDA outlook to $3.93 billion from $3.86 billion and increased its earnings‑per‑share estimate to $5.76 from $5.63. The brokerage cautioned that Fox’s continued reliance on the traditional linear‑television ecosystem and the potential for substantially higher costs when National Football League media rights are renewed could weigh on earnings beyond FY2027, limiting upside for the shares.