News Corp. A Buy, Pre-Earnings

News Corporation, Inc. (NWS) is a vertically integrated media company, well diversified geographically and operationally across all major markets and media platforms. We expect NWS to report 1Q09 financial results on November 7, 2008. The company’s earnings conference call will be held on the same day at 11.00am EST.

Our current revenue and EPS estimates are $8,3000M and $0.34 respectively. Our Buy recommendation remains intact at current levels pending the 1Q09 earnings release. We believe NWS is among the most diversified operators in the sector, with significant interests in all major sub-segments (Filmed Entertainment, Television, Cable Network Programming, Direct Broadcast Satellite Television, Magazines and Inserts, Newspapers and Book Publishing).

Notwithstanding the currently challenging macro-economic environment, we believe the company is well positioned to exploit growth opportunities in both cable and direct broadcast satellite television, and apply a multiple of 9x FY09 EPS of $1.26 to derive a six-month target price of $11.

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