Pro Analysis

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

Hulu CEO Mike Hopkins
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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."