Morgan Stanley upgraded media giant News Corp (NWSA) on Monday, saying that the Rupert Murdoch-led company’s share price discount no longer applies.
The firm upgraded NWSA from “Equal-Weight” to “Overweight” and set a price target of $32. This target suggests a +17.6% upside to Friday’s closing price of $27.21.
A Morgan Stanley analyst noted, “Upgrading to OW on superior organic growth post mid-’13 Publishing spin. Roughly 90% of the remaining Fox Group’s EBITDA comes from well-positioned TV assets. With falling complexity and greater capital allocation visibility, the historic NWS discount should fade. NWSA now joins MS Best Ideas list.”
News Corp shares were up 27 cents, or +0.99%, during morning trading on Monday. The stock is up +45.45% over the past year.
The Bottom Line
Shares of News Corp (NWSA) have a dividend yield of 0.62% based on Friday’s closing price of $27.21.
News Corp (NWSA) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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