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Argus raises Disney's share price target, citing streaming and DTC progress

EditorEmilio Ghigini
Published 04/10/2024, 07:50 PM

On Wednesday, Walt Disney Co. (NYSE:DIS) saw its share price target increased by Argus from $125.00 to $140.00, while the firm maintained a Buy rating on the stock.

The adjustment reflects the analyst's confidence in Disney's competitive position in the video streaming market and its progress towards profitability in its direct-to-consumer (DTC) businesses.

The analyst highlighted Disney's status as a significant competitor to Netflix (NASDAQ:NFLX) in the long-form video streaming space. The company's DTC segments are swiftly moving toward profitability, a factor that contributed to the raised price target. Disney's international theme parks and cruise line operations have also fully resumed after pandemic-induced closures, showing strong performance.

Despite challenges faced by Disney's linear Pay-TV networks, which are losing subscribers due to the ongoing trend of 'cord cutting', the company is actively expanding its DTC offerings. The analyst's comments suggest that the growth of Disney's streaming services is helping to offset declines in traditional Pay-TV subscriptions.

The full resumption of operations in Disney's international parks and cruise lines post-pandemic closures has been met with robust results. This recovery is seen as a positive indicator for the company's overall financial health and future prospects.

Disney's strategic moves in the entertainment industry, particularly in video streaming and direct-to-consumer services, have positioned the company well against competitors. The raised price target to $140 from $125 by Argus indicates a positive outlook on the stock's potential growth.

InvestingPro Insights

Walt Disney Co. (NYSE:DIS) has shown resilience and potential for growth, as highlighted by the recent price target increase from Argus. Supporting this optimistic outlook, InvestingPro data reveals a robust financial performance with a market capitalization of $216.39 billion and a revenue growth over the last twelve months as of Q1 2024 at 5.35%. The company's significant strides in the entertainment industry are reflected in the strong return over the last three months, amounting to 31.43%, and an impressive six-month price total return of 38.53%, indicating a large price uptick and investor confidence.

InvestingPro Tips further enrich this perspective, noting that the net income of Disney is expected to grow this year, and eight analysts have recently revised their earnings estimates upwards for the upcoming period. This consensus among analysts underpins the raised price target and suggests that the company's strategic initiatives are being recognized in the market.

For readers looking to delve deeper into Disney's financials and future projections, InvestingPro offers additional tips, with over 10 more insights available. These insights can help investors make more informed decisions, and by using the coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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