Public perceptions of Walt Disney (DIS) are at multiyear lows after the recent fiasco surrounding the late-night television program Jimmy Kimmel Live!, according to investment bank Jefferies Financial Group (JEF).
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An analysis by Jefferies finds consumer views of the Disney brand at abysmal levels and opinions of the company’s streaming service at multiyear lows after the entertainment giant temporarily suspended comedian Jimmy Kimmel’s late-night talk show over comments he made about the killing of right-wing activist Charlie Kirk.
The brief suspension of Jimmy Kimmel appears to have alienated all manner of consumers, liberals and conservatives alike, says Jefferies. The investment bank, using Morning Consult data, says sentiment for the company and its Disney+ streaming platform have fallen to levels not seen in at least two years.
No-Win Situation?
Jefferies data has found that liberals, who previously had better views of Walt Disney, have soured more than people who identify as conservatives. “The last two weeks for Disney have been eventful to say the least, and have been equally controversial,” wrote Jefferies in a note to clients.
The bank added that a recently announced price hike for the Disney+ streaming service could not have come at a worse time and further hurt views of the Disney brand. However, other analysts and media commentators say Walt Disney was in a no-win situation: keep Jimmy Kimmel on the air and anger conservatives or take the comedian off the air and upset liberals.
In the end, the suspension and then resumption of Kimmel’s show appears to have left nobody happy, says Jefferies.
Is JEF Stock a Buy?
The stock of Jefferies Financial Group has a consensus Hold rating among two Wall Street analysts. That rating is based on two Hold recommendations issued in the last three months. The average JEF price target of $71.50 implies 14.29% upside from current levels.
