Fox (FOXA) is still benefitting from its focus on sports and news coverage, UBS said in a note emailed Friday following the company's fiscal Q1 results.

The results came in "well ahead" of expectations backed by stronger advertising, as Fox's management said it is seeing the most robust ad market in some time, the note said.

UBS highlighted that Fox's Tubi unit was able to achieve profitability in the quarter and, while some seasonality factors are expected, Fox's management indicated digital losses may be better than its previous $350 million guidance for fiscal 2026.

The investment firm said it now expects Fox to post $3.34 billion of earnings before interest, taxes, depreciation, and amortization in fiscal 2026, up from UBS' previous forecast of $3.22 billion.

UBS also noted that Fox has announced a $1.5 billion accelerated share buyback plan, which represents 5% of its market cap.

UBS lifted Fox's price target to $76 from $65, while keeping the company's buy rating, citing the "better core advertising trends and improving digital losses."

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