A top financial services company downgraded Fox Corporation’s stock on Monday, noting issues with the network’s viewership, earnings, and content.
An analyst with Wells Fargo downgraded shares of Fox Corp. from “equal weight” to “underweight,” lowering the price target from $35 per share to $31 per share, according to multiple reports on Monday.
“Fox News is the FOXA cash cow at [around] 80 percent of our FY24E EBITDA,” Steven Cahall, with Wells Fargo, wrote, referring to the acronym for earnings before interest, taxes, depreciation, and amortization. “Viewership is down -19% Jan-June’23 vs Jan-June’21 due to cord cutting and/or programming.”
Mr. Cahall added that “more worryingly, Fox News was 52 percent of cable news primetime viewership for 2020-22, 51 percent in Jan’23, and that has slid to a low of 38 percent in June’23 post-TC,” reported Investing.com. “[Fox News’] share of conservative news viewers has fallen from 94 percent to 84 percent.”…