By Dhirendra Tripathi

Investing.com – Fox Corp Stock (NASDAQ) was 3.5% more volatile Monday, following UBS UBS’s upgrade to purchase stock with a target price of $50.

John Hodulik, an analyst was neutral about the stock in early trading and set a $42 target. Morning trading saw the stock reach a record high of $39.10.

UBS claimed that Fox was the best-placed traditional media company to profit from an increase in sports betting. According to reports, he also referred to Fox’s strong position among pay TV providers with its focus on sports and news.

Hodulik sees potential increases to Fox’s earnings before interest, taxes, depreciation and amortization estimates from a rising renewal cycle, strong spending on political advertisements and the Super Bowl as well as a reset in NFL costs. Hodulik also believes the company is well-positioned to generate stable-to-growing profits long-term, as its peers face greater challenges.

Fox saw a 12.2% increase in quarterly total revenue to $3.05 Billion for the September third quarter. Net income for quarters was $708m, which is a significant increase from the $1.12m reported during the preceding year quarter. Profit was lower due to the absence of a $462 million gain in the prior year quarter which was cash received from Disney for Fox’s prepayment of its share of the tax liabilities resulting from Disney’s divestiture of certain Twenty-First Century Fox assets.