by David Hawkins, Slay News:
Two months after the shock firing of star Tucker Carlson, Fox Corporation got some awful news from Wall Street.
Wells Fargo analysts downgraded shares of Fox Corporation (NASDAQ: FOXA) to underweight from equal weight on Monday. The analysts also lowered the price target to $31 from $35 per share.
The analysts said: “Fox News is the FOXA cash cow at ~80% of our FY24E EBITDA. Viewership is down -19% Jan-June’23 vs Jan-June’21 due to cord cutting and/or programming.
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“More worryingly, Fox News was 52% of cable news primetime viewership for 2020-22, 51% in Jan’23, and that has slid to a low of 38% in June’23 post-TC.
“FN’s share of conservative news viewers has fallen from 94% to 84%.
“While the new PT lineup could drive a rebound, we think Fox News is a Show Me viewership story.
“ESPN DTC could add fuel to the fire.
FOXA Cable could soon go ex-growth on EBITDA like we’ve seen for peer linear nets.
“TV has better topline growth, but less ability to reduce costs due to sports rights. If FOXA is 1% worse cord cutting p.a. vs our ests. = -7% downside to total FY24E-26E EBITDA,” they said.
This comes after other Wall Street analysts did the same.
Bank of America downgraded Fox shares from a buy rating to a neutral rating and decreased its target price.
Argus cut shares of Fox from buy to hold.
Barclays decreased its price target on Fox from $36 to $35 and set an equal weight rating.
Rosenblatt Securities on April 19 lowered its target price on Fox from $35.00 to $33.00.
