With “American Idol” set to return, Bank of America analyst Jonathan Jacoby sees plenty of upside for Fox over the next few quarters, even if the writers strike drags on. His latest research also sees strength in other sections of New Corporation, so he is again telling clients they should buy the stock.
News Corporation reports its quarterly results early next month. “Cable and television should beat our estimates, as cable continues to benefit from increasing affiliate fees, and broadcast should show upside due to less Baseball cost, strong ratings performance, and some expense benefits of the strike,” Jacoby told investors in a research note. He also sees film results hitting expectations, “strong relative performance” from MySpace and from newspapers as well. Jacoby notes that the newspaper business remains strong in Australia.
Jacoby’s 12-month target price for News Corp. stock (NWS) is 26 bucks, a gain of more than a third from where the stock has been of late. It is, in his words, the “growthiest conglomerate at a discounted price.”
Here’s a prediction from the analyst as well: “Additionally, we believe that NWS may (quickly) look to sell the Dow Jones Newswires – we estimate a potential sale value of 750M to 1.1B (and believe there would be many interested parties).”