Story updated at 10:25 a.m. to reflect market activity.
21st Century Fox was gaining 0.4% to $33.91 in morning trading.
The analyst firm raised its price target for the entertainment company to $40 from $33. Analysts Daniel Salmon, Ygal Arounian, and Nirav Modi said the stock has pulled back to an attractive entry point. Shares of 21st Century Fox closed at $33.06 Tuesday.
"The long-term growth story at 21st Century Fox is well-understood - driven by consistent top-line growth of US and international cable networks, acceleration of re-transmission fees for the Fox broadcast network and a doubling of DBS OIBDA by FY2016 -- but recent softness in broadcast ratings, continued investment in cable networks and weak box office results have created a good entry point," the analysts wrote. "We see potential upside to our estimates ($9.1B in FY2016 OIBDA vs. Fox's target of $9B) that could come from a faster-than-expected revenue ramp for Fox Sports 1, FXX, and Star in India, a bounce-back in Fox broadcast ratings (as X Factor leaves the lineup and American Idol winds down), or better-than-expected GDP recovery in Italy, helping Sky Italia become more than just a cost-cutting story."
Separately, TheStreet Ratings team rates TWENTY-FIRST CENTURY FOX INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: