Monday, January 2, 2012

Royal Bank of Canada: Why News Corp is a Top Pick for 2012

News Corp. (NASDAQ:NWSA) advanced after Royal Bank of Canada (NYSE:RBC) upgrades the stock to Top Pick. RBC says NWSA offers the best combination among big media firms of “operating momentum, return of capital potential, company-specific catalysts and reasonable valuation” in 2012. Additional reasons the Royal Bank of Canada upgraded the stock to Top Pick: the potential of $15 billion in dividends and stock buybacks, ratings growth at the FX station, and a syndication deal if The Simpsons ends its long run.

Here’s how News Corp shares reacted to the news:

News Corp. (NASDAQ:NWSA): NWSA shares recently traded at $17.87, up $0.42, or 2.41%. They have traded in a 52-week range of $13.38 to $18.35. Volume today was 14,448,851 shares versus a 3-month average volume of 20,362,000 shares. The company’s trailing P/E is 17.54, while trailing earnings are $1.02 per share.

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