21st Century Fox target raised to $36 at B. Riley FBR, Inc. -Deal talk bolsters argument for realization of SOTP
B. Riley FBR, Inc. raises their FOXA tgt to $36 from $29. The report last week of stalled talks with Disney was followed up, on Thursday, post-close, with reports from the media (including the WSJ and CNBC) that Fox has attracted interest from Comcast and Verizon. They do not know if a deal will be done. In fact, the prospect of a potential DOJ antitrust challenge to the pending AT&T/TWX merger would seem to cast some doubt on anything happening. Still, this many reports, in quick succession from credible media, means that the formerly unthinkable prospect of someone else buying most of Murdoch-controlled Fox is likely to be factored into the equity price for some time. They do not change their Neutral rating-because the indicated movement of Fox's stock, after hours, would make upside to their price target less compelling, and there is meaningful risk a deal does not happen.
FOXA +7% premarket.
FOXA +7% premarket.