Fox Corporation Shares Plunge 18% After Barclays Cuts Price Target to $60
FOXA•Barclays lowered Fox Corp price target to $60 from $67, implying 8.9% upside at current levels. Fox’s $22 billion Roku acquisition sparks new debt and 27% dilution concerns, sending shares down 18% intraday and making it the worst performer on the S&P 500.
1. Barclays Revises Price Target
On June 15, Barclays lowered its Fox Corporation price target to $60 from $67, reflecting a more cautious investment outlook and suggesting an 8.9% upside from prevailing trading levels. This revision highlights growing analyst skepticism about Fox’s near-term valuation following major strategic moves.
2. Acquisition Sparks Debt and Dilution Concerns
Fox Corporation announced plans to acquire Roku for $22 billion, financed largely through new debt and share issuance. Under the deal, Roku shareholders would own roughly 27% of the combined company, raising fears of significant dilution and pressure on Fox’s financial health.
3. Shares Plunge in Trading
Following the acquisition announcement and price-target cut, Fox shares fell 18% in the first hour of trading and ended as the worst performer on the S&P 500, as investors reacted to heightened financial risk and dilution implications.
