Two months after the shock firing of star anchor Tucker Carlson, Fox Corporation got some devastating news from Wall Street.
On Monday, Wells Fargo analysts downgraded shares of Fox Corporation (NASDAQ: FOXA) to “underweight” from “equal weight.”
The analysts also lowered the price target to $31 from $35 per share.
The analysts said: “Fox News is the FOXA cash cow at ~80% of our FY24E EBITDA.
“Viewership is down -19% Jan-June’23 vs Jan-June’21 due to cord cutting and/or programming.
“More worryingly, Fox News was 52% of cable news primetime viewership for 2020-22, 51% in Jan’23, and that has slid to a low of 38% in June’23 post-TC.
“FN’s share of conservative news viewers has fallen from 94% to 84%.
“While the new PT lineup could drive a rebound, we think Fox News is a Show Me viewership story.
“ESPN DTC could add fuel to the fire.
“FOXA Cable could soon go ex-growth on EBITDA like we’ve seen for peer linear nets.
“TV has better topline growth, but less ability to reduce costs due to sports rights,” they said.
“If FOXA is 1% worse cord cutting p.a. vs our ests. = -7% downside to total FY24E-26E EBITDA.”
This comes after other Wall Street analysts did the same.
Bank of America downgraded Fox shares from a “buy” rating to a “neutral” rating and decreased its target price.
Argus also cut shares of Fox from “buy” to “hold.”
Barclays decreased its price target on Fox from $36 to $35 and set an “equal weight” rating.
On April 19, Rosenblatt Securities lowered its target price on Fox from $35.00 to $33.00.
Fox News Viewership Tumult, Cord-Cutting Risk Leads to Wall Street Ratings Downgrade https://t.co/9Z9zIwi5y5
— The Hollywood Reporter (@THR) July 10, 2023
Meanwhile, Newsmax is on the rise.
Newsmax’s total day rating rose 71% as Fox News declined 15% in the same period.
In the prime time hours, Newsmax saw its audience grow 126% as Fox’s audience fell 21%.
READ MORE: Tucker Carlson’s Next Move Revealed, Dealing Major Blow to Fox News
