Rosenblatt Securities Remains a Sell on Fox Corporation Class A (FOXA)

By Carrie Williams

Rosenblatt Securities analyst Mark Zgutowicz maintained a Sell rating on Fox Corporation Class A (FOXAResearch Report) today and set a price target of $33. The company’s shares closed yesterday at $37.42.

Zgutowicz observed:

“We see FOX Bet as a step in the right direction to diversify away from the pay-TV bundle. Given the relatively small investment required by FOXA we are waiting for details to see if this alone can move the needle for them. We think it is more likely the company will need a couple of these opportunities to materially diversify away from the bundle. FOX Bet is a step in the right direction, awaiting more information on the investor call. The main thesis of our Sell rating on shares is the company’s value is completely tied to the pay-TV bundle which we think is shredding faster than consensus expects. In our initiation report we highlighted the need for FOXA to invest in assets outside of the Pay-TV bundle. This investment and partnership appears to be a way for FOXA to begin to diversify its business.”

According to TipRanks.com, Zgutowicz is a 4-star analyst with an average return of 17.7% and a 58.3% success rate. Zgutowicz covers the Technology sector, focusing on stocks such as Spotify Technology SA, Pinterest Inc Class A, and Trade Desk Inc.

Currently, the analyst consensus on Fox Corporation Class A is a Moderate Buy with an average price target of $42.43.

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The company has a one-year high of $41.95 and a one-year low of $35.90. Currently, Fox Corporation Class A has an average volume of 6.86M.

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Fox Corp. delivers compelling news, sports and entertainment content. It provides news under the brands FOX News, FOX Business, FS1, FS2, Big Ten Network, FOX Network and FOX Television Stations. The company is headquartered in New York, NY.