Hi °C | Lo °C While Rupert and James Murdoch's performance in front of the government select committee may not have been to everyone's taste, it seems investors in the media giant were relieved.
Shares in News Corp climbed by 5% during the heated questioning session yesterday, recovering some of the ground lost over the last few weeks. The stock jumped sharply in the immediate aftermath of the attack on the Murdochs by a man carrying a plate of shaving cream but some analysts believe the shares are undervalued at current levels.
The company's shares were trading just below $16 a share, up from $14.76 on Monday but still well down on the $18 level posted at the start of the month before the hacking scandal intensified.
One brokerage house, Wunderlich Securities, even raised its target price for News Corp's shares to $18, saying Rupert Murdoch's 'sincerely contrite' performance over the last few days bodes well.
And ratings agency Moodys, which has spent the last few weeks downgrading once powerful economies, said yesterday it didn't anticipate changing News Corp's rating as a consequence of the ongoing investigation.
"Moodys gains comfort that the rating and stable outlook should be unaffected based upon the company's diversity, strong liquidity and credit metrics," it said.
