Disney's Streaming Surge, Epic Games Deal Among Key Growth Drivers, Says Analyst
Portfolio Pulse from Anusuya Lahiri
Needham analyst Laura Martin reiterated a Buy rating for Walt Disney Co (NYSE:DIS) with a $110 price target, citing key growth drivers such as a breakeven in DTC by fiscal 2024, new subscribers from Charter Communications, a $1.5 billion investment in Epic Games, and increased dividends and share repurchases. Martin also adjusted her revenue and income estimates for Disney's various divisions.
September 26, 2024 | 5:06 pm
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Charter Communications is expected to contribute 5.5 to 6 million new subscribers to Disney starting in the second half of fiscal 2024, which is a positive development for Charter as it indicates a strong partnership with Disney.
The addition of 5.5 to 6 million new subscribers to Disney from Charter Communications is a positive indicator of a strong partnership, which could enhance Charter's market position and subscriber base.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Needham analyst Laura Martin reiterated a Buy rating for Disney with a $110 price target. Key growth drivers include DTC breakeven, new subscribers from Charter, a $1.5 billion investment in Epic Games, and increased dividends and share repurchases. Martin adjusted revenue and income estimates for Disney's divisions.
The analyst's reiteration of a Buy rating and a $110 price target is positive for Disney's stock. The focus on DTC breakeven, new subscribers, and investments in Epic Games are seen as growth drivers. The increase in dividends and share repurchases is also favorable for investors. Adjustments in revenue and income estimates reflect a nuanced view of Disney's financial performance.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100