Bank of America downgrades Fox stock, citing the biggest risk in the upcoming NFL renewal.

LootboxPhobia · 2026-02-25T19:35:42+00:00

Bank of America downgraded Fox's stock rating from "Buy" to "Underperform," lowering the target price from $80 to $45, warning of significant risks in NFL media rights negotiations, and expecting the stock to remain under pressure. Analysts noted that Fox's heavy reliance on sports and news increases its risk.

LootboxPhobia

2026-02-25 19:35:42

Abstract generation in progress

Investing.com - Bank of America downgraded Fox stock in a report on Wednesday, warning that the broadcaster faces the most severe risks in the upcoming NFL media rights negotiations.

Get in-depth analyst research exclusively on InvestingPro

Bank of America analyst Jessica Reif Ehrlich revised the rating from Buy to Underperform and significantly lowered the target price from $80 to $45.

Ehrlich wrote, “Fox is the stock with the greatest risk exposure among our coverage in the upcoming NFL renewal,” citing the company’s heavy reliance on sports and news businesses.

She added, “Assuming the average annual value (AAV) increases 1.5 times (all else equal), we see about a 22% downside risk to our FY27E EBITDA forecast.”

According to Bank of America, the stock has fallen 27% since early January, with the market digesting some of the pressure, but the bank expects continued pressure until the new agreement is clarified.

The bank also lowered its valuation multiple from about 10x to approximately 6x, reflecting increased uncertainty.

Reportedly, amid rising viewership and higher broadcast fees for major sports events, the NFL is seeking to renegotiate contracts early.

Bank of America stated that traditional media companies are structurally at a disadvantage, noting, “As well-funded tech platforms seek premium live content, the range of bidders is expanding.”

Ehrlich warned that even in the best-case scenario, the upcoming renewal will “dilute the profitability of the entire sector.”

For Fox, Bank of America estimates the implied incremental cost will be roughly 22% of FY27 EBITDA, making it the most vulnerable company to NFL re-pricing impacts.

This article was translated with AI assistance. For more information, please see our Terms of Use.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.