Shares of Fox Corp experienced a notable uptick on Friday, climbing approximately 4% to settle near $65.45, following favorable rating revisions from two prominent financial institutions.
JPMorgan elevated its price objective to $82 from a previous $70, while Wells Fargo increased its target to $80 from $65. Both institutions upgraded Fox Corp from Neutral to Overweight ratings.
JPMorgan revised its adjusted EBITDA projections for fiscal years 2027 and 2028 upward by 7% and 9% respectively, following the company’s fourth-quarter financial disclosure. The investment bank highlighted favorable FIFA World Cup revenue dynamics, a robust political advertising environment, and sustained advertising growth as primary catalysts.
Fox’s television division generated $2.48 billion in Q4 revenue, representing a 45% year-over-year expansion. The segment’s EBITDA experienced a dramatic 129% increase to $705 million.
The streaming platform Tubi delivered impressive quarterly performance as well. Revenue expanded 35%, supported by a 17% gain in total viewing hours. The service concluded fiscal 2026 with a user base of 110 million monthly actives.
J.P. Morgan substantially increased its fiscal 2027 television EBITDA forecast by 30% to $1.49 billion. The firm identified the forthcoming 2026 FIFA World Cup and an anticipated historic political advertising season as the primary revenue accelerators.
Management at Fox also indicated it would not pursue premature negotiations regarding its NFL broadcasting rights agreement. JPMorgan characterized this decision as eliminating a significant near-term uncertainty while strengthening the company’s bargaining leverage.
Wells Fargo adjusted its fiscal 2027 EBITDA projection to $4.12 billion from $3.85 billion. The bank now anticipates World Cup-related revenue of approximately $800 million, exceeding its previous forecast of over $600 million. Its television segment EBITDA estimate for fiscal 2027 climbed to $1.6 billion from $1.3 billion.
The strategic Roku acquisition represents a significant component of the enhanced analyst outlooks. Merging Tubi with The Roku Channel would establish the preeminent free ad-supported streaming television operation in the industry.
JPMorgan emphasized that the transaction enhances Fox’s expansion trajectory while alleviating concerns regarding long-term valuation metrics. Roku’s existing footprint of over 100 million streaming households provides Fox with an expanded advertising inventory base.
Wells Fargo projects the merger could yield approximately $300 million in advertising revenue synergies within roughly two years. These benefits would stem from enhanced pricing power, improved advertisement fill rates on Roku Channel inventory, homescreen advertising opportunities, and optimized monetization of third-party streaming applications.
JPMorgan observed that Fox currently trades at 6.8 times enterprise value to EBITDA based on its updated fiscal 2028 forecast, below the recent multiple of approximately 8 times. The firm anticipates potential multiple expansion as market participants increasingly recognize the merged entity as a comprehensive connected-TV platform.
According to InvestingPro data, five analysts have adjusted their earnings projections higher for the forthcoming reporting period.
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