MoffettNathanson downgrades Fox Corp. amid questions on cash flow sustainability

As previously reported, MoffettNathanson downgraded Fox Corp. (FOXA) to Neutral from Buy with a price target of $52, up from $51. Fox sits in “a unique position despite the challenges of the ecosystem around it,” and the company’s fundamental strength, along with some M&A speculation, has led to a re-rating in the stock price, notes the analyst. However, the firm expects investor questions around the sustainability of Fox’s current strong cash flows to likely limit the stock’s upside from the current “elevated levels,” the analyst added.