Jul. 17 at 6:21 PM
Citi named Fox its Top Pick, reiterating a
$78 price target and arguing that the stock's post-Roku acquisition selloff has been excessive. While investors had expected Fox shares to decline by roughly 10% following the announcement, the stock has fallen further amid uncertainty over synergies, differing investor preferences, and limited buying interest before the deal closes.
Citi estimates the Fox-Roku combination could generate roughly
$1 billion in annual EBITDA synergies from both revenue and cost savings, potentially making the transaction free cash flow accretive within one year of closing, earlier than management's two-year outlook. The bank sees advertising improvements at Roku and subscriber growth for FOX One as key revenue drivers, while cost synergies could exceed Fox's
$400 million target. Citi also expects the deal to close as early as Q4 2026, ahead of the company's guidance for the first half of 2027.
$FOXA $ROKU