Optimistic Outlook on Disney: Strong IP, Streaming Growth, and Investment Opportunity

Morgan Stanley analyst Benjamin Swinburne has maintained their bullish stance on DIS stock, giving a Buy rating on May 12.

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Benjamin Swinburne’s rating is based on Walt Disney’s strong ability to produce and distribute popular intellectual property, including live sports, which is expected to generate higher monetization over time. This capability is primarily driven by Disney’s experiential assets and its streaming businesses, which are anticipated to contribute to long-term earnings per share growth in the double digits. Currently, Disney’s shares are trading at a historical discount compared to the broader market, presenting a potential investment opportunity.
Moreover, the ESPN streaming initiative, set to launch soon, aims to counteract the revenue decline from cord-cutting by attracting new streaming subscribers. This move is expected to generate high incremental margins. Additionally, bundling ESPN streaming with Disney Plus and Hulu could further enhance Disney’s stock value. The introduction of new product features, such as greater personalization, is also likely to boost engagement and monetization, supporting Swinburne’s optimistic outlook on Disney’s stock.

According to TipRanks, Swinburne is a 5-star analyst with an average return of 13.1% and a 58.91% success rate. Swinburne covers the Communication Services sector, focusing on stocks such as Spotify, Sphere Entertainment, and TKO Group Holdings.

In another report released on May 12, Seaport Global also reiterated a Buy rating on the stock with a $124.00 price target.

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