NEW YORK (TheStreet) -- Shares of Twenty-First Century Fox (FOXA) - Get Report are up 0.23% to $35.05 in pre-market trading today as Deutsche Bank initiated coverage on the media company with a "buy" rating and $42 price target.

"Fox has the highest profit growth outlook of any company in the sector over the next three years; driven by domestic affiliate and retransmission agreement renewals, international revenue growth in some of the highest growth regions globally, and leveraging investment in content and sports rights that Fox made in 2014 to 2015," analsyts said.

Analysts estimate 2015 will see only 4% to 5% EBITDA growth, but that this will accelerate to 12% in 2016 and 14% in 2017. The growth drivers are principally subscription/affiliate and operating leverage, which have high visibility. Thus far, Deutsche Bank said they have been "conservative" in projecting FOX Network ad revenue.

Separately, TheStreet Ratings team rates TWENTY-FIRST CENTURY FOX INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate TWENTY-FIRST CENTURY FOX INC (FOXA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 414.3% when compared to the same quarter one year prior, rising from $1,207.00 million to $6,207.00 million.
• The debt-to-equity ratio is somewhat low, currently at 0.97, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, FOXA has a quick ratio of 2.31, which demonstrates the ability of the company to cover short-term liquidity needs.
• The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, TWENTY-FIRST CENTURY FOX INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
• Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
• You can view the full analysis from the report here: FOXA Ratings Report