Benzinga | Jan 24, 2022 08:25AM EST

UBS Turns Bullish On Fox; Sees 33% Upside

* UBS analyst John Hodulik upgraded Fox Corp (NASDAQ:FOXA) to Buy from Neutral with a price target of $50, up from $42, suggesting an upside of 32.66%.

* The analyst sees the company as better positioned given its sports betting optionality, measured DTC spend, and leadership within the legacy Pay TV bundle with its sports and news focus.

* Hodulik adds that he sees upside to Fox Corp EBITDA estimates from a ramping renewal cycle, strong political ad spend, the Super Bowl, a reset NFL costs, and lower DTC dilution.

* The analyst also believes that the company is well-positioned to drive stable-to-growing profits over the long term as peers face more "challenging paths."

* Price Action: FOXA shares traded higher by 1.75% at $38.35 in the premarket session on the last check Monday.