Disney reinstated with an Overweight at JPMorgan

JPMorgan reinstated coverage of Disney with an Overweight rating and price target of $140, up from $120, following a period of restriction. While cautious on the media landscape due to pay TV subscriber losses and advertising headwinds, Disney is the firm’s favorite in the group due to the company’s “unique” content, improving streaming financials, and parks operation “which provides an avenue to attractively deploy capital.” Challenges remain on the legacy side of business, though Disney can navigate this through a more substantial cost restructuring at its linear networks, the analyst tells investors in a research note. JPMorgan is also encouraged by ESPN’s strategy of deploying its content across flagship and the sports joint venture, with a potential assist from a strategic partner.