CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We think the magic is back with greater focus and execution on all businesses. We raise our target by $15 to $120 using a forward TEV/EBITDA of 12.1x our FY 24 (Sep.) EBITDA estimate, a premium to the peer group average of 11.0x. We raise our FY 24 EPS view by $0.20 to $4.70 and keep 2025’s at $5.50, both above consensus. The Walt Disney Company (NYSE:DIS) posted Q1 FY 24 adj. EPS of $1.22, an $0.18 consensus beat. DIS made significant progress in reducing costs and capital spending leading to $886M in Q1 free cash flow. Experience (Parks and Cruise Lines) realized +7% Y/Y revenue growth and +8% operating income growth with international parks fully recovered and cruise line strength. Linear Networks (pay TV and broadcast) realized -12% revenue decline and operating profit -7% Y/Y. Direct-to-Consumer posted 15% revenue growth, despite -1.3M fewer subscribers, with +2% ARPU and a -$138M operating loss vs. -$984M a year ago. Sports realized +4% revenue Y/Y and +27% operating profit and ESPN will be part of a new leading sports JV.