- Walt Disney (NYSE:DIS) has picked up 0.8% today after Deutsche Bank (DE:DBKGn) comes away from the Mouse's fiscal Q4 with higher confidence and an upgrade to Buy.
- The firm has a price target of $112, implying 14% upside from yesterday's close.
- Deutsche Bank has agreed with the investment case of a bigger return in 2018 than 2017, but is getting off the sidelines due to renewed confidence in the outlook, with ESPN fronting five reasons for optimism: Subscriber declines have improved, and the addition of more streaming bundles should help on that front.
- There's also more clarity on cost growth in its Cable Networks programming, particularly a one-year headwind tied to the NBA contract renewal.
- More reasons to buy: Consumer products' trough will come in the December quarter, ahead of next year's release of Cars 3 and Spider-Man: Homecoming; Next year should be the company's second-best year at the film studio despite tough comps to a record 2016; and Parks and Resorts growth should accelerate as growth and per-capita spending increase in Orlando (there are "levers to be pulled" in seasonal pricing as well).
- Previously: Disney rides 'Doctor Strange' to best-ever domestic year (Nov. 14 2016)
- Previously: Disney holding 2.6% gains on Iger's ESPN bullishness after miss (Nov. 11 2016)
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