Credit Suisse expects an increase in operating earnings (EBITDA) when third quarter results are released on May 10. This will be driven by the consolidation of Foxtel.
Net income is expected to be well below the prior corresponding period because of unfavourable FX movements, declines in news and information services and subscription video.
The broker retains a Neutral rating and reduces the target to $19.80 from $20.25.
Sector: Media.
Target price is $19.80.Current Price is $17.28. Difference: $2.52 – (brackets indicate current price is over target). If NWS meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
