Use access key #2 to skip to page content.
$13.47 0.07 (0.52%)
8/21/2008 4:02 PM

News Corp (NWS-A)

CAPS Rating:
**

An entertainment company with operations in eight industry segments, including Filmed Entertainment, Television, Cable Network Programming, Direct Broadcast Satellite Television, Magazines and Inserts, Newspapers, Book Publishing and Other.

View All Commentary (NWS-A)

Recs

2

Avatar rjpaiz (< 20) Submitted: 10/01/07 8:15 PM : Outperform Start Price: $22.28 NWS-A Score: -22.20

News Corp. is the best-diversified player among the large-cap US companies in its segment, with properties like the Fox Business Network and MySpace being good examples.

Financially, its estimated 2008 EPS is 21.6% over 2007. Its slightly-above-average P/E of 20.6x (2007) is expected to decline to 16.9x (2008E), just like its competitors' P/E ratios are also expected to decline. News Corp should remain priced at a slight premium (CBS, Disney, Time Warner, and Viacom average 15.2x for 2008E), but I believe its high expected growth is the reason and provides enough justification. The company is also repurchasing shares, always a good sign.

I have a 12-month target price of $26.50, 18.3% higher than today. Including an expected dividend yield of 0.5%, the total expected return is 18.8%.

Report this Post Replies: 0 | Reply

Featured Broker Partners