News Corporation (NWS) Stock Tip of the Day

News Corporation (NWS) have a retained Outperform stock recommendation and an improved share price target of $35.68 (from $33.50) for the voting shares from stock analyst, Macquarie Research Equities (MRE). Their valuation shows a range of possible share price values between $31.29 and $37.06 for the voting shares, with the variation on price mostly a result of whether a 25 percent discount is applied to listed investments. The valuation for News Corporation (NWS), in MRE's opinion does not "adequately capture" the growth in the cable division. "On the purchase by NWS of a 7.5% stake in FXJ, Murdoch commented that this "impetuous" decision was intended to head off a play by other media groups for the publisher" Also, UBS have noted that: "A huge 8 million new profiles a month at NWS’s MySpace may result in MRE’s US$4–6bn MySpace valuation seeming a little conservative with Mr Murdoch suggested a number closer to US$10bn. With respect to any deal with John Malone, Mr Murdoch commented that negotiations were advanced, but subject to “11th hour demands” by Liberty, which could torpedo any settlement. In the event that a deal does go ahead, Mr Murdoch referred to a stock “buyback” (by NWS, of Liberty’s 500m shares) of between A$10–15bn, most of which could be satisfied by the sale of NWS’s 39% stake n DirecTV (currently valued at around US$10.4bn)."

News Corporation Limited is listed on the Australian Stock Exchange (ASX) under stock code NWS. In November 2004, The News Corporation Limited underwent a reorganisation and redomiciled in the United States. That company's securities ceased trading under the ASX codes NCP and NCPDP on 3 November 2004 and commenced trading the following day as an American company under the new name News Corporation, Inc. Securities based on those American shares still trade on ASX, as Chess Depository Interests under the codes NWS and NWSLV. For any announcement in relation to the former Australian company (The News Corporation Limited) please use the code NCP. For any subsequent announcement by the American-based News Corporation, Inc. please use the code NWS. You can view their investor website here.NWS was listed on the ASX on 4 November, 2004. News Corporation is a Diversified international media and entertainment company. Rupert Murdoch is the appointed Chairman, Director, Managing Director. Read previous stock recommendation for News Corporation (NWS).Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!