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Pro Analysis

Here is a quick way old-media-focused Fox could jump into the digital age

Hulu CEO Mike Hopkins
Getty Images
Hulu CEO Mike Hopkins

21st Century Fox lagged the market during the past year, but one Wall Street firm believes there is a way for the company to become more relevant in the digital age.

Credit Suisse reiterated its outperform rating on the media company, saying it can change its fortunes by buying a controlling stake in Hulu. Twenty-First Century Fox shares are roughly flat in the past 12 months through Tuesday versus the S&P 500's 14 percent return.

"US TV ad growth can accelerate ... long term, suggesting both valuation upside for FOXA but also increased strategic logic to owning a bigger stake in Hulu, in our view," analyst Omar Sheikh wrote in a note to clients Tuesday. "Vertically integrated networks/distributors will be in a strong position to exploit [their] access to viewing and other data that platforms can provide … We would therefore argue that it would make sense for Fox to acquire Comcast's stake in Hulu."