Analysts Making Big Changes on Twenty-First Century Fox

Shares of Twenty-First Century Fox Inc. (NASDAQ: FOXA) closed 2016 at $26.59 per share. As of last Thursday’s close, the shares had added $0.86, a little more than 3.2%. Not bad, and way better than Walt Disney Co. (NYSE: DIS), which traded down nearly 5.8% at Thursday’s close. Only Comcast Corp. (NASDAQ: CMCSA) has performed better (up nearly 5%) than Fox since the beginning of the year.

In our last look at Warren Buffett’s portfolio at Berkshire Hathaway Inc. (NYSE: BRK-A), we noted that Buffett continued to hold 8.951 million shares of Fox at the end of 2015, up nearly 18% from his holdings at the end of 2014. Buffett did not add to his position in Fox during the fourth quarter however.

The company has had a surprisingly massive hit with its latest Marvel Comics-based movie, “Deadpool,” which had pulled in nearly $700 million worldwide in less than four weeks. It’s only the third-ever R-rated movie to earn more than $300 million in the United States, according to Box Office Mojo.
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But all the recent news from analysts has been less enthusiastic. Overall ratings have not changed much, but price targets are being reduced. Here’s the latest scorecard:

• CLSA cut its price target from $33 to $26.
• Goldman Sachs lowered its price target from $33 to $31 with a Buy rating.
• Jefferies cut its price target from $37 to $30 and holds a Buy rating on the shares.
• Nomura cut its price target from $31 to $30 with a Buy rating.
• Pacific Crest lowered its price target from $35 to $34 with an Overweight rating.
• Pivotal cut its price target from $32 to $31 and holds a Buy rating on the stock.

Fox shares closed at $27.92 on Friday, up 1.7% for the day, in a 52-week range of $22.66 to $35.85. The consensus price target on the stock is $31.89, although recent changes may not be included yet. The high target is $39 and the low target, not including CLSA’s latest cut, is $27.

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