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Disney estimates need to come down for stock to work, says Wells Fargo

Wells Fargo analyst Steven Cahall keeps an Overweight rating with $147 price target on Disney but also lowers the firm’s Q3 EPS view by 13% to 98c and its FY23 view by 6% to $3.82. The firm also cuts its FY24 EPS view to $5.55 from $5.71 and its FY25 view to $6.91 from $7.09. Better visibility into future earnings growth from DTC will be required and the September investor event may serve as a “meaningful catalyst” for the firm’s bull case, but estimates need to come down for stock to work, the analyst tells investors in a research note.

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