Morgan Stanley stays Overweight Disney after first reveal of ESPN financials

After Disney filed historical financials with its new segment reporting, breaking up its linear networks business between Sports and Entertainment, Morgan Stanley says “the most important element of this new disclosure is “the first-ever reveal” of ESPN’s financials. This new disclosure is “highly informative” as investors debate the potential growth outlook for ESPN and assess the opportunity to monetize highly profitable but declining linear networks, says the analyst, whose Overweight rating on shares remains based on a bullish view on the value of its Parks & Experiences segment. Morgan Stanley maintains a $105 price target on Disney following the disclosures.