UPDATE: CIMB Raises PT on News Corp Due to Exchange Rate Movements

In a report published on Friday, CIMB analyst Fraser McLeish raised the PT on News Corp (NASDAQ: NWSA) from $29 to $31.89 and maintained a Neutral rating on the company.

In the report, CIMB commented that, "Our combined valuation for New News Corp and 21st Century Fox is US$30.29 (US$25.81 for 21st Century Fox and US$4.48 for New News Corp). This is marginally higher that our previous US$29.61 NWS valuation reflecting the roll-forward of our DCF, partially offset by lower associate share prices and higher corporate costs as a result of the split. Our AUD valuation and target price increase to A$31.89 (from A$29.00) to reflect the slight uplift in USD valuation and exchange rate movements (we now use an AUD/USD exchange rate of 0.95 versus 1.02 previously). The table below shows News Corp multiples versus US entertainment peers."

News Corp closed Thursday at $31.68.