Wall Street Bullish on FS1
July 3, 2013
The Sports Business Daily (subscription required) reported on Tuesday that Wall Street analysts are bullish on the launch of Fox Sports 1 and it may positively impact 21st Century Fox stock. The network’s expanded sports programming is said to accelerate sales and contribute to the growth.
CNBC’s Jim Cramer broke word that Wall Street analysts were “very excited” about Fox Sports 1 and its potential for “21st Century Fox stock.” Credit Suisse analysts cite to “Fox Sports 1 and FXX (another new Fox network focusing on the 18-34 male demo) to take advantage of expanded international networks and the acquisition of programming.” The assessment by Credit Suisse is that the investments will impair short term earnings but it expects “these investments to yield solid long term returns.”
21st Century Fox stock (FOXA) is a result of the split with News Corp. It is the entertainment part of the News Corp. division and opened trading on July 1. It has a target stock price of $34 according to analysts and has been given an “outperform” rating. On Wednesday it closed at up for the day at $29.65.
An interesting report on what Wall Street thinks of the new network. While the feeling is that it will never surpass ESPN, it will be a competitor that will be profitable. The UFC will be an anchor tenant in the FS1 lineup and will help in the success (or non-success) of the network.