The News Corp. Expecting Cable And Broadcast Growth

Goldman Sachs writes "Relative to its peers, The News Corporation (NASDAQ: NWSA) possesses several cable networks (Fox News, FX, NatGeo) which still have room for growth, particularly on fees – with high profile resets pending in the next two months. International cable network profitability should more than double over the next five years driven by rising pay TV penetration that fuels both affiliate fee and advertising growth. Mr. [Chase] Carey believes investors will ultimately bracket FOX broadcast with cable nets as retrans fees flow through."

Goldman Sachs maintains its Buy rating and $17 price target.

The New Corporation closed yesterday at $13.50.

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