Morgan Stanley Lowers News Corp Price Target to $32.40
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
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Should l Buy NWS?
Source: Yahoo Finance
- Price Target Adjustment: Morgan Stanley has lowered its price target for News Corp (NWSA) from $38 to $32.40 while maintaining an Overweight rating, indicating a cautious outlook on the company's future performance.
- Earnings Update: This adjustment follows the update of FY26 first-half results, and despite the price target reduction, Morgan Stanley asserts that its fundamental positive thesis remains unchanged, suggesting continued optimism about News Corp's long-term potential.
- Earnings Expectations: News Corp reported a Q2 adjusted EPS of 40 cents, exceeding market expectations of 37 cents, demonstrating the company's resilience in the current economic environment.
- Buyback Plan: News Corp outlines a $1 billion share buyback plan for 2025, which is expected to enhance investor confidence and boost EPS, reflecting the company's proactive approach to capital management.
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Analyst Views on NWS
About NWS
News Corporation is a diversified media and information services company. Its Digital Real Estate Services segment consists of the Company’s interest in REA Group and Move. REA Group is a digital media business specializing in property and property-related services on its Websites and mobile apps. Move is a provider of digital real estate services in the United States and primarily operates a real estate information, advertising and services platform, as well as its referral-based services, online tools and services to do-it-yourself landlords and tenants. Its Dow Jones segment consists of Dow Jones, a global provider of news and business information, which distributes its content and data through a variety of media channels. Its Book Publishing segment consists of HarperCollins, a consumer book publisher with operations in 15 countries. Its News Media segment consists of News Corp Australia, News UK and the New York Post and includes The Australian, The Daily Telegraph, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Morgan Stanley Lowers News Corp Price Target to $32.40
- Price Target Adjustment: Morgan Stanley has lowered its price target for News Corp (NWSA) from $38 to $32.40 while maintaining an Overweight rating, indicating a cautious outlook on the company's future performance.
- Earnings Update: This adjustment follows the update of FY26 first-half results, and despite the price target reduction, Morgan Stanley asserts that its fundamental positive thesis remains unchanged, suggesting continued optimism about News Corp's long-term potential.
- Earnings Expectations: News Corp reported a Q2 adjusted EPS of 40 cents, exceeding market expectations of 37 cents, demonstrating the company's resilience in the current economic environment.
- Buyback Plan: News Corp outlines a $1 billion share buyback plan for 2025, which is expected to enhance investor confidence and boost EPS, reflecting the company's proactive approach to capital management.
See More
News Corporation Declares $0.10 Semi-Annual Dividend
- Dividend Declaration: News Corporation has declared a semi-annual dividend of $0.10 per share, consistent with previous distributions, reflecting the company's ongoing commitment to stable cash flow and shareholder returns.
- Payment Schedule: The dividend is set to be paid on April 8, with a record date of March 11 and an ex-dividend date also on March 11, ensuring shareholders receive their earnings promptly and bolstering investor confidence.
- Buyback Plan Expansion: The company signals an expansion of its stock buyback program, indicating management's confidence in future growth, particularly in the context of double-digit growth in Dow Jones and digital real estate sectors.
- Earnings Outlook: News Corporation is set to release its Q2 2026 earnings report, with high market expectations for its performance, reflecting investor interest in the company's sustained growth potential.
See More
News Corp Stock Falls 2.9% in Premarket Trading Following Q2 Earnings Report
- Stock Performance: News Corp shares fell by 2.9% in pre-market trading following the release of their Q2 results.
- Earnings Report Impact: The decline in stock price reflects investor reaction to the company's quarterly earnings report.
See More
News Corporation Q2 2026 Earnings Call Highlights
- Significant Revenue Growth: News Corporation reported Q2 revenue of $2.4 billion, a 6% increase year-over-year, with total segment EBITDA rising 9% to $521 million despite a one-time inventory charge at HarperCollins, reflecting ongoing improvements in revenue and profitability that bolster confidence in future growth.
- Accelerated Buyback Program: The company repurchased $172 million in shares during the second quarter, up $132 million from the previous year, indicating a commitment to maximizing shareholder value while maintaining financial flexibility, which further strengthens market confidence.
- Strong Digital Real Estate Performance: Realtor.com saw a 10% revenue increase to $143 million, while Dow Jones revenue rose 8% to $648 million, showcasing the company's success in digital transformation and expected continued revenue growth in the future.
- Optimistic AI Revenue Outlook: Management highlighted a $1.5 billion payout agreement with Anthropic, expected to generate significant revenue for HarperCollins, further advancing the company's strategic positioning in AI, despite challenges in the advertising market, while focusing on enhancing cost efficiencies.
See More
News Corp Launches California Post Tabloid
- New Product Launch: News Corp is launching the California Post tabloid this week, aiming to attract a broader readership, particularly in the California market, which is expected to enhance its influence in local news.
- Market Positioning: The tabloid will focus on local news and entertainment content, seeking to boost advertising revenue by catering to the needs of local residents, thereby improving the company's overall financial performance.
- Competitive Strategy: By introducing the California Post, News Corp aims to secure a foothold in the competitive media landscape, especially in the context of accelerating digital transformation, thereby increasing its market share.
- Brand Expansion: The launch of this tabloid signifies News Corp's further efforts in brand diversification, aiming to attract younger readers through new media formats and enhance brand loyalty.
See More
News Corporation Q2 Earnings Beat Expectations
- Earnings Beat: News Corporation reported a Q2 non-GAAP EPS of $0.40, exceeding expectations by $0.03, which reflects ongoing improvements in profitability and boosts investor confidence.
- Significant Revenue Growth: The company achieved revenues of $2.36 billion, a 5.4% year-over-year increase, surpassing analyst expectations by $60 million, indicating strong performance in advertising and subscription services that solidifies its market position.
- Positive Market Reaction: Following the earnings beat, the market reacted positively, with expectations of a stock price increase, reflecting investor optimism regarding the company's future growth potential.
- New Product Launch: This week, News Corporation launched the California Post tabloid, aimed at expanding its market reach and attracting younger readers, which is expected to further diversify revenue streams and enhance brand influence.
See More
Morgan Stanley Lowers News Corp Price Target to $32.40
- Price Target Adjustment: Morgan Stanley has lowered its price target for News Corp (NWSA) from $38 to $32.40 while maintaining an Overweight rating, indicating a cautious outlook on the company's future performance.
- Earnings Update: This adjustment follows the update of FY26 first-half results, and despite the price target reduction, Morgan Stanley asserts that its fundamental positive thesis remains unchanged, suggesting continued optimism about News Corp's long-term potential.
- Earnings Expectations: News Corp reported a Q2 adjusted EPS of 40 cents, exceeding market expectations of 37 cents, demonstrating the company's resilience in the current economic environment.
- Buyback Plan: News Corp outlines a $1 billion share buyback plan for 2025, which is expected to enhance investor confidence and boost EPS, reflecting the company's proactive approach to capital management.
See More
News Corporation Declares $0.10 Semi-Annual Dividend
- Dividend Declaration: News Corporation has declared a semi-annual dividend of $0.10 per share, consistent with previous distributions, reflecting the company's ongoing commitment to stable cash flow and shareholder returns.
- Payment Schedule: The dividend is set to be paid on April 8, with a record date of March 11 and an ex-dividend date also on March 11, ensuring shareholders receive their earnings promptly and bolstering investor confidence.
- Buyback Plan Expansion: The company signals an expansion of its stock buyback program, indicating management's confidence in future growth, particularly in the context of double-digit growth in Dow Jones and digital real estate sectors.
- Earnings Outlook: News Corporation is set to release its Q2 2026 earnings report, with high market expectations for its performance, reflecting investor interest in the company's sustained growth potential.
See More
News Corp Stock Falls 2.9% in Premarket Trading Following Q2 Earnings Report
- Stock Performance: News Corp shares fell by 2.9% in pre-market trading following the release of their Q2 results.
- Earnings Report Impact: The decline in stock price reflects investor reaction to the company's quarterly earnings report.
See More
News Corporation Q2 2026 Earnings Call Highlights
- Significant Revenue Growth: News Corporation reported Q2 revenue of $2.4 billion, a 6% increase year-over-year, with total segment EBITDA rising 9% to $521 million despite a one-time inventory charge at HarperCollins, reflecting ongoing improvements in revenue and profitability that bolster confidence in future growth.
- Accelerated Buyback Program: The company repurchased $172 million in shares during the second quarter, up $132 million from the previous year, indicating a commitment to maximizing shareholder value while maintaining financial flexibility, which further strengthens market confidence.
- Strong Digital Real Estate Performance: Realtor.com saw a 10% revenue increase to $143 million, while Dow Jones revenue rose 8% to $648 million, showcasing the company's success in digital transformation and expected continued revenue growth in the future.
- Optimistic AI Revenue Outlook: Management highlighted a $1.5 billion payout agreement with Anthropic, expected to generate significant revenue for HarperCollins, further advancing the company's strategic positioning in AI, despite challenges in the advertising market, while focusing on enhancing cost efficiencies.
See More
News Corp Launches California Post Tabloid
- New Product Launch: News Corp is launching the California Post tabloid this week, aiming to attract a broader readership, particularly in the California market, which is expected to enhance its influence in local news.
- Market Positioning: The tabloid will focus on local news and entertainment content, seeking to boost advertising revenue by catering to the needs of local residents, thereby improving the company's overall financial performance.
- Competitive Strategy: By introducing the California Post, News Corp aims to secure a foothold in the competitive media landscape, especially in the context of accelerating digital transformation, thereby increasing its market share.
- Brand Expansion: The launch of this tabloid signifies News Corp's further efforts in brand diversification, aiming to attract younger readers through new media formats and enhance brand loyalty.
See More
News Corporation Q2 Earnings Beat Expectations
- Earnings Beat: News Corporation reported a Q2 non-GAAP EPS of $0.40, exceeding expectations by $0.03, which reflects ongoing improvements in profitability and boosts investor confidence.
- Significant Revenue Growth: The company achieved revenues of $2.36 billion, a 5.4% year-over-year increase, surpassing analyst expectations by $60 million, indicating strong performance in advertising and subscription services that solidifies its market position.
- Positive Market Reaction: Following the earnings beat, the market reacted positively, with expectations of a stock price increase, reflecting investor optimism regarding the company's future growth potential.
- New Product Launch: This week, News Corporation launched the California Post tabloid, aimed at expanding its market reach and attracting younger readers, which is expected to further diversify revenue streams and enhance brand influence.
See More
