It's Harvest Time For Fox


Banc of America Securities LLC cable analyst Doug Shapiro initiated coverage of Fox Entertainment Group Inc. with a "buy" rating and a 12-month stock-price target of $36, stating that the cable and broadcast giant should continue to grow rapidly as it "continues to harvest years of investment spending."

Shapiro said that cable networks should be the engine for growth at Fox, which is 80.6% owned by News Corp. Shapiro also saw value for Fox in News Corp.'s pending acquisition of Hughes Electronics Corp., adding there could be some upside to Fox shareholders.

Shapiro said placing the Hughes investment at the Fox level could provide a platform for launching new programming and provide Fox with crucial bargaining power with distributors.