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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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
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