Analyst Upgrades Fox on NFL "Clarity," Deal Potential
Fox Corp.'s stock earned an upgrade on Wednesday thanks to the sports rights cost "clarity" provided by the recent NFL rights renewal andits role as "a potential participant in media M&A." Wells Fargo analyst Steven Cahall upgradedthe shares of Fox, led by CEO Lachlan Murdoch, from "underweight" to "equal weight" and his price target by $14 to $41 writing in a report: "We've historically been bearish on sports as rights tend to grow in excess of linear revenues, and Fox has been the media stock with the most sports leverage." But he highlighted that "we now see the new NFL deal as a clearing event with our out-year TV estimates moving up significantly," adding that "from here, M&A could be an opportunity." Plus, he noted thatsports betting