Piper Sandler has maintained a Neutral rating on Walt Disney (NYSE: DIS) with a steady price target of $95.00.
The firm introduced a new monthly report that examines alternative data trends across Disney's different business units.
The initial findings suggest mixed trends within the company's experiences business, although the Disney+ streaming service is reportedly gaining favorable momentum.
The report aims to provide insights by highlighting key data points from various sources. These metrics are intended to offer a more nuanced understanding of how different segments of Disney's operations are performing. The experiences business, which includes theme parks and resorts, has shown varied results according to the data provided.
Conversely, Disney's direct-to-consumer platform, Disney+, appears to be on an upward trajectory. The streaming service has been a crucial part of Disney's business model, especially as consumer preferences shift towards digital content consumption.
Walt Disney's stock performance will continue to be watched by investors as the company navigates the diverse aspects of its entertainment and media empire, with particular attention to the growth and momentum of its streaming service, Disney+.
In other recent news, the Walt Disney Company (NYSE:DIS) has announced several significant developments. The company named James Gorman, a Morgan Stanley veteran, as its board chairman starting from 2025. Gorman, who will relinquish his role at Morgan Stanley at the end of 2024, is also leading the committee responsible for selecting Disney's next CEO.
In addition to this, CVS Health (NYSE:CVS) recently announced David Joyner as its new CEO, while Nike (NYSE:NKE) appointed Elliott Hill as its new president and CEO. Boeing (NYSE:BA) also selected industry veteran Kelly Ortberg as its CEO earlier this year.
Meanwhile, in the financial analysis sector, Piper Sandler initiated coverage on Disney shares with a Neutral rating. Goldman Sachs reaffirmed its Buy rating on Disney, despite anticipating a negative financial impact from the imminent Hurricane Milton. The firm projects that Walt Disney World in Florida will face disruptions due to the hurricane, resulting in a hit to the Parks and Experiences segment's EBIT for the first fiscal quarter of 2025.
Furthermore, the Philippines has introduced a 12% value-added tax on digital services offered by international tech firms, including Disney. This move is expected to generate around $1.9 billion from 2025 to 2029.
InvestingPro Insights
To complement Piper Sandler's analysis, InvestingPro data provides additional context on Disney's financial position. The company's market capitalization stands at $174.77 billion, reflecting its significant presence in the entertainment industry. Disney's revenue for the last twelve months reached $90.03 billion, with a modest growth of 2.53% over the same period.
InvestingPro Tips highlight that Disney is expected to see net income growth this year, aligning with the positive momentum observed in its Disney+ streaming service. This growth potential is further supported by the company's PEG ratio of 0.33, suggesting that Disney may be undervalued relative to its expected earnings growth.
However, investors should note that Disney is trading at a P/E ratio of 36.87, which could be considered high by some metrics. This valuation may reflect market expectations for future growth, particularly in the streaming segment.
For those seeking a more comprehensive analysis, InvestingPro offers 10 additional tips on Disney, providing a deeper dive into the company's financial health and market position. These insights can be particularly valuable as Disney continues to evolve its business model in response to changing consumer preferences and market dynamics.
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