Benzinga - by Priya Nigam, Benzinga Staff Writer.
Shares of Fox Corp (NASDAQ: FOXA) have added more than 8% over the past month as U.S. presidential election campaigns gain momentum.
Although primaries ad spending remained soft, the 2024 presidential election ad spending could hit a new record, according to Seaport Research Partners.
President Joe Biden is reportedly planning to spend more than $30 million in ads — a portion of the $155 million in cash his re-election campaign has on hand as of the end of February.
Former President Donald Trump and the Republican National Committee raised over $65.6 million in March. The four-time indicted candidate hopes to raise $33 million at an April 6 fundraiser.
The Fox Analyst: David Joyce upgraded the rating for Fox from Neutral to Buy, while keeping the price target unchanged at $37.
The Fox Thesis: MAGNA Global projected political ad spending to reach $9 billion this year, which could drive 15% and 20% year-on-year in the third and fourth quarters of 2024 (F1Q25 and F2Q25), respectively, Joyce said in the upgrade note.
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“At the Television segment, ad growth could be +11.6% and 13.2% in aggregate in 1Q25 & 2Q25 (including Broadcast Network, TV Stations, and Tubi),” the analyst wrote. “Typically, the local TV stations garner the bulk of political ad spending,” he added.
The strong momentum in sports continues, with a revival in fan engagement in Fox's main properties, namely NASCAR and MLB, Joyce stated. The company’s strong balance sheet is “enabling ongoing healthy capital returns,” he further said.
FOXA Price Action: Shares of Fox had declined by 0.06% to $31.12 at the time of publication on Friday.
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Latest Ratings for FOXA
| Feb 2022 | Deutsche Bank | Maintains | Buy | |
| Feb 2022 | Morgan Stanley | Maintains | Overweight | |
| Jan 2022 | UBS | Upgrades | Neutral | Buy |
View the Latest Analyst Ratings
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