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Why Credit Suisse Gave Its Recent Thumbs up to 21st Century Fox

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Dec. 4 2020, Updated 10:52 a.m. ET

Credit Suisse bullish on 21st Century Fox

Early in March 2016, according to a Benzinga report, Credit Suisse (CS) analyst Omar Sheikh remained “incrementally more bullish” on CBS (CBS) and Twenty-First Century Fox (FOXA). According to the Benzinga report, Credit Suisse has issued an “outperform” rating for FOXA, giving a target price of $37.

During the past month, the FOXA’s stock price has gone up by 11.6% while CBS and The Walt Disney Company (DIS) have seen their stock prices go up by 15.4% and 6.2%, respectively. In contrast, Viacom (VIAB) has seen its stock price taking a nosedive by 6.6% during the same period.

[marketrealist-chart id=1120750]

On the other hand, the price of the SPDR S&P 500 ETF (SPY) has risen by 7% in the past one month. SPY also holds 0.18% of FOXA. For investors interested in exposure to computers, SPY has an exposure of 3.8% to the sector.

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Why the bullish outlook from Credit Suisse

According to Benzinga, the Credit Suisse Research report states that “For FOXA, visibility on fiscal 2017 growth, strong Hulu trends, and the sizeable discount to our SOTP valuation all make us more positive,” and specified that “the strength of the TV ad market, upward momentum on retrans/reverse comp and potential upside to content license revenues this year are all tailwinds for the equity story.”

Keep reading for a detailed tour of FOXA’s current business and the outlook for the remaining of fiscal 2016.

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