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NWS - UBS rates the stock as Buy

PUBLISHED

2020-10-01

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News Corp owns 61.6% of the separately listed REA Group ((REA)). Looking at REA's last share price and News Corp's B class last share price, UBS estimates REA makes up about 71-79% of News Corp's market value (versus the peak of 88% on June 22). 

The broker thinks this could imply the market is pricing News Corp's 'stub' asset at a valuation lower than the broker's.

UBS retains its Buy rating with a target price of $25, noting REA Group accounts for about $13.30 of its valuation with the rest attributed to News Corp.

Sector: Media.

Target price is $25.00.Current Price is $19.08. Difference: $5.92 - (brackets indicate current price is over target). If NWS meets the UBS target it will return approximately 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).