Seaport Research upgraded Disney to Buy from Neutral with a $108 price target. The firm cites “better macroeconomic underpinnings to the story” for the upgrade. Seaport sees a better macroeconomic outlook going forward and says investment sentiment on Disney is “seemingly willing to accept the current state” of the Parks demand and emergent direct-to-consumer profits “as a base from which to build.” Soft Parks data is likely temporary and Disney+ profitability is “getting the benefit of the doubt,” with recent price increases and paid sharing announcements possibly supporting further average revenue per user and subscriber growth, the analyst tells investors in a research note.
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