Research Alert: CFRA Raises Opinion On 'a' Shares Of News Corp. To Strong Buy From Buy
10:45 AM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target price by $9 to $25 (0.9% yield) on premium FY 22 (Jun.) EV/EBITDA of 14.0x vs. its publishing peers. We raise FY 21 and FY 22 EPS estimates by $0.21 and $0.06 to $0.55 and $0.52. While the pandemic has taken its toll, we think the company's better-than-expected Dec-Q and fiscal H1 results further underscore its multi-year digital transformation as potential catalysts, despite a somewhat cautious H2 outlook. Dec-Q adjusted EPS of $0.34 vs. $0.19, was $0.25 above consensus. Factoring in the May '20 sale of News America Marketing (direct marketing), revenue fell 3% partly on weakness in print ads vs. notable gains at the book publishing and digital real estate segments (also Dow Jones and subscription video services), all of which reflected continued strong digital growth. With cost control (and some forex tailwinds), adjusted total segment EBITDA margin widened 600 basis points, With $1.6B in cash (vs. $1.3B debt), we see ample liquidity buffer as the company navigates the pandemic.