Fox Corp. upgraded to Buy from Neutral at Citi

Citi upgraded Fox Corp. to Buy from Neutral with a price target of $35, up from $34. The firm’s analysis shows the sports joint venture will be a positive for Fox. Beyond the benefit to estimates, the venture could be a positive for the stock’s multiple, as it places Fox on a “firmer footing” as it reduces exposure to the secular pressures affecting the pay TV ecosystem, the analyst tells investors in a research note. The firm says that despite the joint venture announcement – and a revenue and EBITDA beat during the quarter – Fox’s equity has not performed. Citi disagrees with concerns that many consumers will not sign up for the service and believes the market may be underestimating the potential impact.