Seaport Research analyst David Joyce slashed the price target on Fox Corporation by more than 15% to $61 from $72.
- The analyst maintained a ‘Buy’ rating, noting that it had updated its target following the company’s announcement that it will purchase Roku.
- According to Koyfin data based on 17 analysts’ estimates, FOXA has a 12-month average price target of $71.40, indicating about 36% upside from its last close.
- On Monday, Fox announced that it is acquiring streaming services company Roku in a cash-and-stock deal valued at roughly $22 billion.
Shares of Fox Corp. (FOXA) declined more than 4% at close on Tuesday amid Wall Street pessimism over its recently announced plans to acquire Roku Inc. (ROKU) in a $22 billion cash-and-stock deal.
Seaport Research analyst David Joyce slashed the price target on FOXA by more than 15% to $61 from $72 and maintained a ‘Buy’ rating on the shares. The analyst said it is updating its price target for the stock following the company’s announcement that it will acquire Roku.
Wall Street Stance On FOXA
Earlier on Tuesday, Morgan Stanley reportedly said in a note that Fox’s acquisition of Roku will accelerate its strategy to increase exposure to streaming and connected TV. According to a report from Dow Jones Newswires, the firm noted that the acquisition of Roku would expand Fox’s position from content owner and distributor into platform ownership, providing direct access to more than 100 million streaming households.
“We believe the combination has the potential to boost FOX’s content reach through Roku’s distribution and provide value through Roku’s first-party data,” the analysts reportedly said. “While some peers are making a bet on owning content assets, Fox is making a clear bet on the future of distribution.”
The Morgan Stanley analysts also expect Roku founder and CEO Anthony Wood to remain after the deal closes and join Fox’s board. “We note that while Wood holds >50% voting power in Roku through Class B shares, FOX will pay equal consideration for both Class A and Class B ROKU shares,” they wrote.
On Monday, Barclays lowered the price target on FOXA to $60 from $67 and maintained an ‘Equal Weight’ rating on the shares, according to TheFly. The analyst said that while the Roku acquisition would boost Fox’s streaming exposure and bring scale to the company, the platform conflict, integration risk, and leverage at a potentially tricky time could weigh on the company.
Evercore ISI analyst Vijay Jayant has also said that Fox’s acquisition of Roku was a logical, on-strategy deal that does more to reshape the company’s narrative than its near-term numbers. The analyst also said that Roku fits the mergers and acquisitions screen Fox has repeatedly telegraphed as an aligned, digital-growth asset rather than the legacy linear subscription revenue it had ruled out.
According to Koyfin data based on 17 analysts’ estimates, FOXA has a 12-month average price target of $71.40, indicating about 36% upside from its last close.
Of the 17 analysts, seven rate the company a ‘Buy,’ nine a ‘Hold,’ and one a ‘Sell.’
Wall Street Stance On ROKU
Meanwhile, Koyfin data shows a 12-month average price target of $149.18 for ROKU, implying about 8% upside from its last closing price. Of the 27 analysts covering the company, 10 rate it a ‘Buy’ or higher, 16 rate it a ‘Hold’, and 1 rates it a ‘Sell’.
FOXA, ROKU Deal Contours
On Monday, Fox announced it is acquiring streaming service Roku in a cash-and-stock deal valued at roughly $22 billion, marking CEO Lachlan Murdoch’s first major acquisition since taking control of the media empire.
Roku shareholders will receive $96 in cash plus about 0.97 Fox shares per Roku share, valuing the company at $160 per share, a 33.7% premium. Roku founder Anthony Wood will join Fox’s board and could receive up to $3 billion from the transaction.
The merger combines Fox’s content portfolio with Roku’s streaming distribution platform and is slated to give Fox access to Roku’s more than 100 million households, helping expand its digital audience, strengthen targeted advertising, and reduce reliance on traditional cable distribution.
FOXA Stock: Retail Stance
On Stocktwits, retail sentiment around FOXA was in the ‘extremely bullish’ territory over the past 24 hours amid ‘extremely high’ message volumes.
Retail sentiment around ROKU was also in the ‘extremely bullish’ territory amid ‘extremely high’ message volumes.
FOXA stock has declined 29% so far in 2026, while ROKU stock has gained nearly 27% in the same period.
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