Fox (FOXA) Price Target Cut at Pacific Crest
NEW YORK (TheStreet) -- Shares of Twenty-First Century Fox (FOXA) - Get Report are up by 0.13% to $26.89 in early-morning trading on Monday, even though the company's price target was lowered to $35 from $37 with an "overweight" rating at Pacific Crest.
The firm also lowered its fiscal 2016 fourth quarter earnings estimates on the company to 32 cents from 42 cents per share at Pacific Crest this morning.
The change in prices is a result of the under-performance of the film "Independence Day,"as well as the company's timing of purchase and assumption spending, according to the analyst note.
Pacific Crest still recommends owning Fox as it believes the company will have solid profit growth from sports streaming. "We believe Fox's heavy investments over the past several years in international and domestic sports will provide leverage that can drive margin expansion for its cable networks segment and the business as a whole," the firm wrote.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate TWENTY-FIRST CENTURY FOX INC as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk.
You can view the full analysis from the report here: FOXA
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