Analyst Remains Confident in Fox (FOX) Outlook After Strong Earnings, Dividend Boost

Fox Corporation (NASDAQ:FOX) is one of the most undervalued and overlooked large-cap stocks. On August 7, Bank of America’s Jessica Reif Ehrlich reiterated a Buy rating on Fox Corporation (NASDAQ:FOX) with a $65 price target. She noted that Q4 results exceeded expectations in both revenue and EBITDA, with revenue up 6.5% year over year and EBITDA climbing 21%.

According to the analyst, the upside drivers included stronger-than-expected affiliate and advertising revenue, as well as margin expansion. Adjusted EPS and free cash flow also came in above consensus, reinforcing Fox Corporation’s (NASDAQ:FOX) financial strength.

Although questions remain around upcoming digital investments, Ehrlich emphasized Fox Corporation’s (NASDAQ:FOX) core strength in sports and news, which are segments less exposed to volatility in entertainment advertising. She also pointed to the company’s $5 billion buyback program and recent dividend increase as clear signs of management’s confidence in long-term performance, reinforcing her positive outlook.

Fox Corporation (NASDAQ:FOX) is a U.S.-based media company with leading assets in news, sports, and entertainment, including FOX News, FOX Sports, and FOX Television Stations.

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Disclosure: None. This article is originally published at Insider Monkey.