Disney initiated with neutral view at Piper Sandler, here’s why

Piper Sandler analyst Matt Farrell initiated coverage of Disney with a Neutral rating and $95 price target. The firm sees limited upside to estimates over the next few quarters given the moderation in the Disney’s experiences segment. The consumer-related slowdown within the company’s parks business will likely persist for a few more quarters, and with experiences representing 40% of segment operating income, Piper does not expect material upside, the analyst tells investors in a research note. Despite the near-term headwinds, the firm is a believer in the Disney “flywheel and the unique collection of assets in the industry, particularly following the recent film success.”