Wolfe Research upgraded Fox Corp. to Outperform from Peer Perform with a $71 price target, arguing the planned merger with Roku will double Fox's long-term sales growth rate. Analyst Peter Supino said the combined entity would create a connected TV and streaming unit accounting for roughly 45% of pro forma TV engagement and about one-third of pro forma revenue. Fox shares have fallen 23% from pre-merger levels and trade at 11.8 times next-twelve-month pro forma unlevered free cash flow, a discount Wolfe expects to narrow as selling abates and new shareholders assess the outlook. The $71 target is based on 13 times estimated pro forma 2028 unlevered free cash flow of $3.6 billion.
Fox Corp Class AWolfe Research upgraded Fox to Outperform with a $71 price target, citing the Roku merger's growth prospects and a discount valuation.
Roku IncThe article discusses the planned merger with Fox, which is expected to double Fox's long-term sales growth rate and create a combined connected TV and streaming unit.