Bank of America raises its recommendation for media company Fox to Buy from Underperform and raises the price target to 85 from 54 dollars following the planned acquisition of Roku.
The bank believes that the deal, which is expected to be completed at the beginning of 2027, strengthens Fox’s position in streaming and creates significant synergies.
For 2028, the bank expects revenue synergies of 530 million dollars and cost savings of 400 million dollars. The valuation corresponds to around 10 times forecast EBITDA for 2028.
Bank of America also sees potential for higher growth and improved margins.
