Guggenheim raised its price target on FOX Corp. (NASDAQ: FOXA) to $85.00 from $75.00 while maintaining a Buy rating, driving shares up more than 3% intra-day on Monday.
The firm named FOX its top Buy idea within the media sector, citing the company’s consistent focus on sports and news programming as key drivers of revenue, profit, and cash flow growth despite broader industry pressure from declining pay-TV trends.
Guggenheim said FOX was positioned to benefit from exceptionally strong advertising demand, moderating subscription declines relative to peers aided by the rise of “skinny bundles,” and an upcoming cycle of distributor renewals where FOX was expected to gain share. Additional catalysts included a robust content slate featuring the FIFA World Cup and U.S. elections, as well as disciplined investment in growth initiatives such as Tubi, FOX One, and sports gambling.
While the firm acknowledged that industry-wide NFL contracts were likely to be renewed at higher costs ahead of their 2027 expiration, it believed the expense increase would be manageable and provide long-term visibility into the 2030s. Guggenheim raised its second-quarter adjusted EBITDA forecast to $452 million from $439 million and lifted its fiscal 2026 EBITDA estimate to $3.29 billion from $3.27 billion, citing stronger-than-expected advertising trends at Fox News and continued pricing power in sports.
