From Financial Modeling Prep: 2025-04-07 15:21:00

Wolfe Research downgraded Fox (NASDAQ:FOXA) from Peer Perform to Underperform with a price target of $48 due to concerns about long-term growth potential and the near-term advertising environment.

Fox has been viewed as better positioned among legacy media firms, focusing on live sports, news content, and Tubi streaming. However, Wolfe believes growth avenues in direct-to-consumer streaming are limited as larger players dominate.

Advertising revenue faces pressure from a softening macroeconomic backdrop, posing an increasing risk to Fox’s financial performance. Concerns also arise from Fox News’ aging audience demographics and competition in sports rights from streaming giants.

Trading at 7.8x estimated 2025 EV/EBITDA, Fox does not offer a compelling margin of safety, according to Wolfe. The stock’s exposure to declining linear TV trends and uncertain long-term valuation outlook are key concerns.



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