Firstly, he has doubts that ESPN can continue to grow in an “environment with cord-cutting and large fixed-programming contracts.” ESPN contributes close to a quarter of Disney’s earnings.
Additionally, Gould is worried that Disney’s film studio may have hit its peak earnings after a historic year and is unsure if the studio can continue to offset Disney’s slowing cable revenues.
Lastly, the analyst is waiting to see how well Shanghai Disney, its newest amusement park, will perform. Gould likes Disney long term, but short-term he suggests CBS and TWX.
The analyst initiated a Hold rating with a price target of $100, marking an increase of 2% from current levels.
According to TipRanks, the analyst has a success rate of 73% with an average return of 6.8% per recommendation.