Disney and Apple worth more together than separately, says Needham

Needham analyst Laura Martin keeps a Buy rating on Apple (AAPL) with an unchanged $170 price target but speculates that Apple and Disney (DIS) are worth more together than separately. The analyst writes that strong distribution and world-class content are "complementary networks", and each company offers something that the other does not have: What Apple does best is distribute content globally to 2B high-end mobile devices owned by 1.25B unique and wealthy users, and what Disney does best is create AAA content franchises, which it distributes globally across all screens, as well as in the physical world. Disney and Apple are "better together", Needham states. The firm also believes that Disney might be valued at Apple’s level "if it had no value leakage", but Apple can buy Disney for one tenth the cost of Apple owing to the value that Disney creates for adjacent companies in ecosystems in which it participates.