News Corp shares trade flat as Jarden lifts target price
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The news: News Corp shares were flat after morning trade on the ASX as Jarden hiked its target price on the company but cropped its full-year EBITDA forecast.
The numbers: News Corp shares were trading roughly flat at around $48.51 by midday AEDT having added more than 40% over the last 12 months.
Jarden retained its 'overweight' rating on the stock and lifted its target price from $45.80 to $49.80.
Jarden lowered its full-year EBITDA estimate by 1.7% driven by unfavourable foreign exchange movements, and 5% lower expected EBITDA from its digital real estate services segment.
The context: Jarden analysts said it updated its forecasts on News Corp following its first-quarter result, released earlier this month, and a refresh of its valuation of the conglomerate's real estate platform REA Group.
The analysts now estimate that REA comprises 65% to 72% of the News Corp's market value, having lifted their standalone valuation for REA from $181 to $205 per share.
At News Corp's annual general meeting, which took place from around 5am AEDT today, the media group fended off a proposal from activist hedge fund Starboard Value to loosen the Murdoch family’s grip on the company by eliminating its dual-class share structure.
The source: Jarden research
