Shares of Fox (FOX, FOXA) closed higher after the company received an upgrade from Citi to Buy from Neutral, with a price target of $35 per share. The upgrade stems from Fox's sports streaming partnership with Warner Bros. Discovery (WBD) and Disney (DIS). Jason Bazinet, Citi Managing Director, joins Yahoo Finance to discuss the reasons behind his call to upgrade the company and how the company may be positioned going forward. Bazinet elaborates on the reason for his call despite investor skepticism: "There's a lot of skepticism about the efficacy of this sports bundle on two fronts. One is a lot of investors don't believe that consumers are going to buy it because it only contains about half of the sports rights. And the second reason is they fear that a lot of people will buy it, but they're going to spin down from their big, fat pay TV package to something that's cheaper and thinner, and that's going to hurt Fox. That's why Fox traded down on the news. Our thesis is pretty simple. A lot of people are going to buy this and it's actually going to bring in cord cutters, cord nevers that have never had a pay TV subscription. It's actually going to be positive for the stock." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino

Read more --->