Citi observes the company has benefited hugely from its expansion into digital real estate. This is now the largest contributor to profit for the business. Foxtel and Fox Sports continue to be weak.
The broker considers the stock to be fairly valued at the current price and maintains a view that investors seeking exposure to digital estate should buy REA ((REA)) directly. Neutral retained. Target rises to $17.70 from $17.30.
Target price is $17.70.Current Price is $17.53. Difference: $0.17 – (brackets indicate current price is over target). If NWS meets the Citi target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).