Bernstein buys Disney, calls company ‘only credible challenger to Netflix’
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Bernstein said Disney’s planned acquisition of Hulu will offset short-term problems and benefit the company in the long term. The company initiated shares with an Outperform rating. Analyst Laurent Jung’s price target of $103 suggests a potential upside of 27% from Thursday’s closing price. Yun said that although Disney’s plan to acquire Comcast’s 33% stake in Hulu poses a risk in the short term, as it is unclear how much the acquisition will ultimately cost, in the long term Disney will “By having full control over your assets, you can earn more profits.” “While we are bearish on linear and consensus, we are bullish on the possibility of DIS transitioning to DTC.” [direct to consumer] “We expect DTC growth to outpace linear decline and support overall media growth, with DTC revenue exceeding linear revenue in 2024 and Disney becoming the undisputed second-largest subscription video provider.” “We predict that demand will be high,” he wrote. He added that in addition to Disney’s position as “the only credible challenger to Netflix,” the company’s parks business adds another strong revenue stream, adding, “Our target price multiple is “This suggests a significant premium compared to its industry peers, but still less than seven times the number of turns of Netflix.” “As an industry leader and a stable growth story with Parks’ strong foundation, we believe DIS should command a premium,” he said. The entertainment conglomerate’s stock has fallen nearly 7% this year. The stock price has fallen over the past six months. Questions over CEO Bob Iger’s successor persist as DIS YTD Mountain rises above 19% on his Disney YTD chart — CNBC’s Michael Bloom contributed to this report Disclosure: Comcast owns CNBC’s parent company, NBCUniversal are doing.
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