NEW YORK – After continued declines over the past two weeks amid a phone hacking scandal, News Corp.’s stock rose more than 5 percent on Tuesday.
After U.K. parliamentary testimony from chairman and CEO Rupert Murdoch and son and deputy COO James Murdoch, the company’s Class A shares finished the day 5.5 percent higher at $15.79. They had also been up during their appearance.
The day’s gain took the conglomerate’s market value to $41.8 billion, according to Bloomberg.
“The volume of shares traded has been several times normal over the past week, so those who wanted to lighten up their exposure likely already have, so those with a longer-term, opportunistic view are buying now,” said Miller Tabak analyst David Joyce.
While he reduced his one-year price target on the Class A shares to $17 from $20 on Tuesday, he reiterated his “buy” rating and suggested longer-term investors will find it attractive. Joyce also said that the conglomerate can start buying back stock in mid-August.
Email: Georg.Szalai@thr.com
Twitter: @georgszalai
