Shares of Fox Corporation were downgraded by Wells Fargo analysts on Monday, citing concerns related to news, earnings, and viewership. The analysts lowered the stock’s rating from equal weight to underweight and adjusted the price target to $31 per share from $35.
According to Investing.com, the analysts highlighted Fox News as a significant contributor to Fox Corporation’s earnings before interest, taxes, depreciation, and amortization (EBITDA), accounting for approximately 80% of the projected EBITDA for FY24E.
They noted a decline in viewership of 19% from January to June 2023 compared to the same period in 2021, potentially attributed to cord-cutting and programming changes.