FOXA Stock Just Scored a Rare Double-Upgrade. Here's Why.

Fox Corp (FOXA) shares opened higher on Oct. 16 after Bank of America double-upgraded the mass media giant, moving directly from “Underperform” to “Buy.” Analyst Jessica Reif Ehrlich also raised her price target for FOXA to $85, indicating potential for a more than 30% rally from current levels. 

Her bullish research note adds to recent momentum in Fox stock, which is currently up roughly 30% versus its year-to-date low in late June. 

What Made BofA Upgrade Fox Stock?

BofA’s change of heart reflects a reassessment of FOXA’s position as television audiences migrate online. The bank initially had concerns about the firm’s streaming strategy and the potential for an early NFL rights renewal. But it now sees near-term renewal risk receding until the 2029 opt-out window. 

Meanwhile, buying Roku (ROKU) will give Fox an established streaming operating system and distribution platform, strengthening its ability to bring its traditional television portfolio directly to consumers.

The combination will pair FOXA’s sports, news, and Tubi service with ROKU’s relationships with more than 100 million global streaming households. 

Ehrlich turned constructive on Fox shares because that creates a broader foundation for distributing programming and monetizing audiences through digital advertising. 

Roku Deal Makes FOXA Shares Worth Buying

The financial opportunity tied to the ROKU transaction also explains Ehrlich’s bullish upgrade. BofA considers the $400 million cost-savings target achievable, representing 10% of the combined selling, general, administrative, and corporate expense base. 

Its base case includes about $530 million in revenue synergies, rising to a whopping $1.07 billion under a bullish scenario. Together, the anticipated benefits imply roughly $700 million of additional EBITDA in 2028. 

Ehrlich’s upwardly revised $85 price target for FOXA shares values the combined business at 10x her estimated 2028 pro forma enterprise value to EBITDA. 

Based on 13 distinct technical indicators, Barchart also currently holds a “40% BUY” average opinion on Fox Corp. 

Wall Street Remains Bullish on Fox Corp

While not as bullish as BofA, other Wall Street firms also favor owning FOXA stock heading into 2027. 

The consensus rating on Fox Corp sits at “Moderate Buy,” with the mean price target of roughly $75 indicating potential for a nearly 20% rally from here. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.