CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We believe DIS has a rigorous plan to drive future growth and enterprise value leading to the April 3 shareholder meeting. We raise our target by $19 to $139 on a forward TEV/EBITDA of 14.1x our 2024 EBITDA estimate of $1.46B. Our multiple is well below the five-year historic average of 22.5x, but a premium to linear network peers that trade at high-single digits. We think DIS deserves a higher valuation for Experiences (parks and cruises lines) at 37% of FY 2023 (Sep.) revenue and 59% of operating income and leading Sports franchises (18%, 33%) with ESPN networks. The turnaround story centers around Entertainment’s (45%, 7%) film, television networks, and direct-to-consumer units with Disney+, ESPN+, and Hulu. We like that DIS is driving efficient content spending, as well as its $7.5B expense reduction plan and new partnerships in gaming and sports gambling. DIS plans to buy the 33% minority interest from Comcast (CMCSA 42 ****), which we think may cost $10.0B-$11.5B, but should benefit the Disney+ bundle.