Fox Still Rates 'Buy'

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Banc of America Securities cable analyst Doug Shapiro reiterated his "buy" rating on Fox Entertainment Group, adding that he expects fiscal fourth-quarter revenue to rise 14% and cash flow to increase 40%.

Shapiro expects strong growth at Fox's cable networks in the quarter, although he added that his estimates could prove to be conservative.

Shapiro estimated in a report that cable network revenue and cash-flow would grow by 15% and 65%, respectively, driven primarily by Fox News Channel. Although Shapiro estimated that Fox News likely incurred additional newsgathering costs and pre-emptions as a result of the recent war in Iraq, he added that Fox News has done a remarkable job in holding ratings after the war had ended.

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