In a report released today, Mark Zgutowicz from Rosenblatt Securities reiterated a Buy rating on Walt Disney (DIS), with a price target of $175. The company’s shares closed on Friday at $134.33.
Zgutowicz wrote:
“We update our model for the investor day and put our estimates at the high end of ’24E subscriber guidance for Disney+, Hulu, and ESPN +, although we view this as conservative as we think content cost guide is sufficient at this price point. We are ~2% above consensus on FY2Q19 earnings, see pg.2 for details. Sub guidance achievable and likely conservative despite lower spend per sub than Netflix. A key area of pushback we received on our bullishness towards Disney+ from Disney bears and Netflix bulls was content spend guidance is not high enough to meet the sub guidance. As seen in 3, we expect Disney to spend substantially less than Netflix (NFLX – on original programming and licensed content in aggregate, and modestly less on a per sub basis.”
According to TipRanks.com, Zgutowicz is a 4-star analyst with an average return of 18.5% and a 61.8% success rate. Zgutowicz covers the Technology sector, focusing on stocks such as Spotify Technology SA, Trade Desk Inc, and Wix.com Ltd.
Currently, the analyst consensus on Walt Disney is a Strong Buy with an average price target of $146.20, representing an 8.8% upside. In a report issued on April 23, Merrill Lynch also maintained a Buy rating on the stock with a $168 price target.
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Walt Disney’s market cap is currently $201.5B and has a P/E ratio of 18.38. The company has a Price to Book ratio of 4.
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