Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Morgan Stanley believes Disney can deliver growth

Published 06/02/2023, 13:50
Updated 06/02/2023, 13:50
© Reuters.

© Reuters.

By Michael Elkins

Morgan Stanley reiterated an Overweight rating and $115.00 price target on Disney (NYSE:DIS) ahead of the mass media company’s 1Q23 earnings report. The bank's analysts remain optimistic that Disney's Parks segment, which represents the majority of its earnings, can deliver healthy growth in FY23 and beyond. However, increasing the contribution from the Media segment by both improving monetization and lowering costs are key to the bull case.

The analysts wrote in a note, “We continue to believe Disney can deliver significant earnings growth over the next several years. This growth is expected to come through continued growth at its Parks & Experiences businesses (DPEP) and a return to growth for its Media & Entertainment businesses (DMED) in F24.”

Morgan Stanley forecasts adjusted EPS growing at a 20%+ CAGR from F22 through F25. They also trimmed 1Q23 Disney Plus core net adds estimates to +1.2mm (from +2.5mm) to account for the potential elevated churn from recent US price increases.

The company is expected to release earnings results after market close on Wednesday, February 8th.

Shares of DIS are down 0.61% in premarket trading on Monday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.