Fox gains after BofA double upgrades on Roku deal
ROKU•Fox shares rose 1.7% after BofA Global Research upgraded the company to buy from underperform and raised its price target to $85 from $54. BofA cited the pending $22 billion Roku acquisition and sees about $530 million in revenue synergies.
1. BofA upgrades Fox
Fox shares rose 1.7% to $65.08 on Friday after BofA Global Research upgraded the company to buy from underperform. The brokerage raised its price target to $85 from $54, implying 33% upside to the stock’s last close; the Wall Street median price target is $76.
2. Roku deal synergies
BofA said the pending Roku acquisition, expected to close in early 2027, would give Fox a scaled operating-system and distribution platform. It sees about $530 million in revenue synergies and said Fox’s $400 million run-rate cost synergy target looks achievable through advertising sales, ad technology and corporate overhead savings. Fox said in June it would buy Roku for about $22 billion in cash and stock.
3. Analyst ratings
BofA said Roku could ease concerns about Fox’s long-term shift from linear TV to direct-to-consumer streaming and push NFL renewal risk closer to the 2029 opt-out window. Thirteen of 22 brokerages covering Fox rate the stock strong buy or buy, while nine rate it hold; shares are down about 11% year to date.
