There is Long Term Potential in Disney's Parks with Aggressive Content Monetization: Morgan Stanley
Portfolio Pulse from Anusuya Lahiri
Morgan Stanley analyst Benjamin Swinburne reiterated an Overweight rating on Walt Disney Co (NYSE:DIS) with a price target of $105. Disney plans to increase investment in the Disney Parks, Experiences, and Products ("DPEP") segment. The recent Charter Communications, Inc (NASDAQ: CHTR) agreement clarifies the path for ESPN. Disney's media assets are valued at roughly $50 billion, less than 1x sales, or 30% of Netflix Inc's (NASDAQ:NFLX) current enterprise value. Unconfirmed reports suggest Disney is considering selling a 30% stake in ESPN at a $25-35 billion valuation. The analyst expects Disney to move aggressively to optimize content monetization in the years ahead.
September 20, 2023 | 4:14 pm
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NEUTRAL IMPACT
Charter Communications' agreement with Disney clarifies the path for ESPN.
The agreement with Disney could have a neutral impact on Charter's stock as it provides clarity but does not necessarily imply growth.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
The analyst expects a conclusion to the process with Comcast Corp by year-end or early CY24.
The expected conclusion of the process with Disney could have a neutral impact on Comcast's stock as it does not imply a direct competition or threat.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Disney's media assets are valued at 30% of Netflix's current enterprise value.
The comparison to Netflix's value could have a neutral impact on Netflix's stock as it does not imply a direct competition or threat.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Disney's plans to increase investment in the DPEP segment and potential sale of a stake in ESPN could impact its stock positively.
The analyst's Overweight rating and the potential for increased content monetization could drive Disney's stock higher.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100