Walt Disney, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst David Karnovsky from J.P. Morgan maintained a Buy rating on the stock and has a $138.00 price target.
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David Karnovsky has given his Buy rating due to a combination of factors that highlight Disney’s potential for growth and resilience in the market. One of the key reasons is the positive trend in Disney’s domestic parks and experiences segment, which has shown promising data. Additionally, the company’s direct-to-consumer (DTC) segment is expected to benefit from an acceleration in programming and operational efficiencies, which could lead to improved profitability.
Furthermore, Disney’s strategic focus on integrating Disney+ and Hulu, along with the rollout of ESPN DTC, positions it well for future growth. The upcoming financial quarter provides Disney with an opportunity to shift the narrative towards its growth drivers, such as new cruise ships and a strong film slate. Despite some recent challenges, including the temporary suspension of Jimmy Kimmel Live!, the overall outlook remains positive. With a price target of $138 and a valuation that suggests downside support, Karnovsky sees potential for a re-rating, especially if Disney provides more context around its multi-year guidance.
According to TipRanks, Karnovsky is a 5-star analyst with an average return of 12.8% and a 69.23% success rate. Karnovsky covers the Communication Services sector, focusing on stocks such as Walt Disney, Sphere Entertainment, and Cinemark Holdings.
In another report released on October 8, Goldman Sachs also maintained a Buy rating on the stock with a $152.00 price target.