Disney price target raised to $120 from $115 at Bernstein

Bernstein raised the firm’s price target on Disney (DIS) to $120 from $115 and keeps an Outperform rating on the shares. The firm notes that the much anticipated password sharing crackdown for Disney SVODs has begun, and the management has indicated the benefits will start to materialize in the back half of the calendar year. Netflix’s (NFLX) success in the crackdown suggests the range of potential outcomes for Disney, but two factors are likely to limit Disney’s upside, namely the number of shared accounts/addressable base is lower vs. Netflix in absolute terms, and conversion efficiency is going to be lower given the lower utility of Disney+ and Hulu visa-vis Netflix, Bernstein says.