Macquarie assesses the outlook for News Corp ahead of the third quarter result on May 9. A weaker Australian housing market, Brexit and the launch of Kayo by Foxtel are likely to have a negative impact.
However, the broker retains an Outperform rating because of potential valuation upside. Macquarie reduces estimates for earnings per share in FY19 by -3.2% and FY20 by -3.1%. Target is $24.42.
Sector: Media.
Target price is $24.42.Current Price is $17.31. Difference: $7.11 – (brackets indicate current price is over target). If NWS meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges – negative figures indicate an expected loss).
