UBS updates forecasts to account for the first quarter. First-quarter operating earnings (EBITDA) fell -38% to $221m, well below forecasts. The company highlighted a particularly sluggish Australian economy and property market.
News Corp has recently announced a content partnership with Facebook which is expected to have a positive impact on financials from the second half of FY20.
UBS maintains a Buy rating and $23.75 target.
Sector: Media.
Target price is $23.75.Current Price is $19.25. Difference: $4.50 – (brackets indicate current price is over target). If NWS meets the UBS target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
