Analysts at Goldman Sachs updated their stock-performance ratings on two media giants today, recommending that investors buy Rupert Murdoch‘s News Corp. (NWS) and shifting its outlook on Time Inc. parent Time Warner (TWX) to neutral.
Citing an improved earnings outlook, Goldman said News Corp. shares could go as high as $17, up from a previous price target of $15.50. Shares were lately down 4% at $14.06 in midday trading.
Time Warner, meanwhile, also got a price-target boost, to $37 from $36, but Goldman said that investors should hold off on buying because there are better opportunities elsewhere in the sector. Goldman recommended News Corp. or Disney, which also garnered a buy rating today, as more attractive alternatives.
Time Warner shares were lately down 2.9% at $29.64, and Disney was lower by 2.3% at $32.48.