JPMorgan downgraded Fox Corp. to Neutral from Overweight with a price target of $36, down from $40. While Fox reported solid fiscal Q1 results, the downgrade reflects more conservative long-term assumptions, the analyst tells investors in a research note. The firm likes Fox’s concentrated news, sports, and broadcast strategy, but says long-term strategic questions remain. It questions the company’s lack of a wider digital strategy. Linear ecosystem subscriber losses remain elevated in the coming years and the pace of affiliate increases will fade, leaving Fox subject to a tough linear affiliate trend more similar to peers, says JPMorgan.
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