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Investing.com - MoffettNathanson raised its price target on Walt Disney (NYSE:DIS) to $140.00 from $130.00 on Monday, while maintaining a Buy rating on the entertainment giant’s stock. The company, with a market capitalization of $215.5 billion, has shown strong momentum with a 24.49% return over the past year. InvestingPro data reveals 7 additional key insights about Disney’s current position.
The research firm’s analysis focuses on two key questions that will shape Disney’s share price trajectory: whether Parks can continue as a growth driver despite challenges, and the potential upside for Direct-to-Consumer (DTC) business following the Hulu arbitration. With revenue growth of 5.42% and healthy margins, Disney maintains its position as a prominent player in the entertainment industry.
MoffettNathanson utilized alternative data sources, including average daily wait times at Walt Disney World, to support its view that park attendance remains largely unaffected by the new Epic Universe competition, noting that Epic needs to improve crowd control and expand capacity.
The firm believes the resolution of the Hulu arbitration will finally allow Disney to take significant steps toward delivering more engagement, increased synergies, and faster margin expansion in its streaming business.
Disney shares have fluctuated between approximately $80 and $120 for over three years, following a surge to nearly $200 per share during the post-COVID rally. Currently trading near its 52-week high of $124.69, the stock carries a P/E ratio of 24.46. According to InvestingPro’s comprehensive analysis and Fair Value model, Disney currently shows potential for further price movement.
In other recent news, Walt Disney announced a collaboration with British broadcaster ITV (LON:ITV) to feature a selection of each other’s shows on their respective streaming platforms, Disney+ and ITVX. This strategic move aims to attract new audiences by expanding viewership through shared content. Additionally, A+E Global Media, a joint venture between Disney and Hearst, is exploring strategic options such as a potential sale or merger, with Wells Fargo (NYSE:WFC) assisting in the process. In terms of analyst activity, Guggenheim raised its price target for Disney to $140, maintaining a Buy rating. This adjustment reflects improved operating expenses and better-than-expected sports advertising revenue. Jefferies also upgraded Disney’s stock rating to Buy, increasing its price target to $144. This upgrade is based on positive outlooks for Disney’s parks and cruise segments, as well as anticipated growth in the direct-to-consumer segment. Both firms highlight Disney’s strategic moves, including the ESPN direct-to-consumer launch, as key factors in their analyses. These developments underscore Disney’s efforts to navigate industry challenges and capitalize on growth opportunities.
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