On Thursday, UBS analyst John Hodulik updated the financial outlook for FOX Corp. (NASDAQ:FOXA), increasing the price target from $50.00 to $63.00 while maintaining a Buy rating on the company’s shares. The optimistic outlook aligns with FOX’s impressive financial performance, having achieved an 87% return over the past year and maintaining a perfect Piotroski Score of 9, according to InvestingPro data. Hodulik highlighted FOX’s advantageous position to successfully navigate the changing video landscape, prompting an upward revision in revenue and EBITDA growth estimates for the future.
FOX Corp.’s second fiscal quarter results demonstrated benefits from cyclical factors, but Hodulik noted an improving core outlook for affiliate and advertising trends. With current revenue of $15.18 billion and an EBITDA of $3.38 billion in the last twelve months, FOX maintains strong operational metrics and an excellent overall financial health score of 3.02 on InvestingPro. He pointed out that growth in skinny bundles and more flexible packaging options among distributors are likely to bolster FOX’s core network performance. Additionally, the return of brand advertisers to FOX News and sustained ratings momentum are seen as positive signs for future advertising demand and pricing.
UBS now anticipates a 14% increase in revenue and a 20% rise in EBITDA for fiscal year 2025, up from the previous estimates of 13% and 16%, respectively. Trading at a P/E ratio of 11.04 and near its 52-week high, FOX appears fairly valued according to InvestingPro’s Fair Value analysis. Despite the expectation that cyclical tailwinds will subside in fiscal year 2026, with the political cycle and Super Bowl effects lapsing, Hodulik is optimistic about FOX’s prospects. He believes the company is in a stronger position than its peers to maintain or grow profits over the long term.
The revised EBITDA forecast for fiscal years 2026 and 2027 is now over $3.2 billion and $3.5 billion, respectively, an increase from the prior estimates of $3.0 billion and $3.3 billion. This adjustment is based on the expectation that FOX will continue to capitalize on its strategic strengths and market position, supported by its strong financial metrics and moderate debt levels.
In other recent news, Fox Corporation reported a record-breaking Super Bowl LIX, generating over $800 million in gross revenue from advertising sales across all platforms. The game, which saw the Philadelphia Eagles triumph over the Kansas City Chiefs, set a new viewership record, drawing an average audience of 127.7 million viewers across all platforms. Guggenheim Securities and CFRA have subsequently raised their price targets for Fox Corporation shares to $60 and $57 respectively, reflecting confidence in the company’s growth prospects. The increases followed Fox Corporation’s reported acceleration in total company revenue growth and impressive December quarter earnings which outpaced consensus estimates. Furthermore, Fox News dominated YouTube as the top news brand in January 2025, garnering 410 million video views, outperforming its closest competitor, NBC News, by a staggering 145%. These are recent developments that highlight Fox Corporation’s strong performance and growth trajectory in the media industry.
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