Bank Of America Expects Solid F1QE Results For Twenty-First Century Fox Inc

In a report published Thursday, Bank of America analyst Jessica Reif Cohen reiterated a Buy rating and $40.00 price target on Twenty-First Century Fox Inc (NASDAQ: FOXA).

In the report, Bank of America noted, “We project FOXA's F1QE will show mid-single digit revenue and EBITDA growth due to strong performance at Film and Cable Networks, partially offset by softer Television and higher expense growth at Cable Networks. Key drivers incl.: (1) a solid summer finish at the Studio (aided by Dawn of the Planet of the Apes, Let's Be Cops, The Maze Runner, X-Men: Days of Future Past int'l and The Fault In Our Stars int'l theatrical vs. last year's The Wolverine and The Heat theatrical), (2) solid Cable Networks (aided by high single digit adv. and double digit affil. fee growth, partially offset by higher programming costs at FX and Star + currency headwinds),(3) strong retrans at Television (+25%), (4) soft adv. at Television (hampered by an estimated low-mid-teens general entertainment adv. declines at FBC), (5) higher programming costs at Television and (6) low-single digit underlying declines at Local TV. We estimate $1.5bn in buybacks in the Q.”

Twenty-First Century Fox Inc closed on Wednesday at $33.70.