Hold Rating for Fox Amid Strong Revenue Beat and Balanced Valuation Risks

Analyst Doug Creutz from TD Cowen maintained a Hold rating on Fox (FOXA – Research Report) and increased the price target to $42.00 from $36.00.

Doug Creutz has given his Hold rating due to a combination of factors including Fox’s recent financial performance and market conditions. The company’s first-quarter revenue for the fiscal year 2025 surpassed both the firm’s and market expectations, largely due to lower costs in the Cable Networks division and a boost from sports sublicensing fees. Despite these positive results, Creutz maintains a cautious outlook, which is reflected in the Hold rating.
Creutz acknowledges the strong political advertising and sports sublicensing revenues that contributed to the revenue beat, but also notes that these are low-margin areas, which may not significantly enhance profitability. Additionally, while advertising and affiliate fees showed solid growth, the overall cost increase due to sublicensing rights somewhat tempers the enthusiasm. The analyst’s decision to maintain a Hold rating suggests a belief that, despite the improved price target, the stock’s current valuation is balanced with its potential risks and rewards.

In another report released yesterday, CFRA also upgraded the stock to a Hold with a $46.00 price target.

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Fox (FOXA) Company Description:

Fox Corp. delivers compelling news, sports and entertainment content. The company provides news under the brands FOX News, FOX Business, FS1, FS2, Big Ten Network, FOX Network and FOX Television Stations. It empowers a diverse range of creators to imagine and develops culturally significant content, while building an organization that thrives on creative ideas, operational expertise and strategic thinking. The company was founded on May 3, 2018 and is headquartered in New York, NY.