News Corp reported a strong 2Q result, assesses UBS, with earnings (EBITDA) a 8% and 13% beat compared to the broker’s and the consensus estimate.
A rebound in advertising and contributions from deals with Facebook and Google boosted News Media, notes the analyst. Momentum across most of the businesses was positive due to the advertising lift, rising digital subscriptions and Rea Group’s ((REA)) growth.
The broker raises FY22-24 EPS forecasts by 34%, 12% and 11%, respectively, which lifts the price target to $42.5 from $41.50.
Sector: Media.
Target price is $42.50.Current Price is $33.01. Difference: $9.49 – (brackets indicate current price is over target). If NWS meets the UBS target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
