Morgan Stanley has revised its price target for News Corp (NWSA), reducing it slightly to $37 from a previous target of $38, while maintaining an Overweight rating on the stock. Despite recognizing ongoing challenges in the advertising sector, the firm emphasizes its analysis of Dow Jones, which it values independently at $12 billion. This valuation translates to approximately $21 per share of News Corp.
The firm's revised valuation strategy indicates that its estimation for Dow Jones is roughly 20%, or $4 per share, higher than the consensus of other market analysts. This adjustment demonstrates Morgan Stanley's confidence in the intrinsic value of Dow Jones as part of News Corp’s broader portfolio, despite the hurdles in the advertising landscape.
