Entertainment giant Disney (DIS) may have landed an unexpected win from an unlikely corner, as famous—or perhaps infamous—commentator Jim Cramer offered up a surprisingly bullish perspective on the stock. Investors were provisionally prepared to go along with Cramer here, and sent shares up fractionally in the closing minutes of Tuesday’s trading.
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Cramer noted that “…the stock is radically undervalued because the franchise is worth so much.” And on that point, he was scarcely alone, according to a report from CNBC. Redburn Atlantic analysts raised their rating on Disney from Neutral to Buy, and also bolstered their price target, sending it up from $100 all the way up to $147.
Redburn made its case on that clear: the rise of streaming profits has, finally, reached a point where it can actively offset losses from the linear segment. There was also further good news from streaming, which is enjoying what Redburn called a “renaissance in content performance.” However, Redburn did look for some issues coming out around the parks, which have been an increasingly pricey problem for Disney for some time now.
Making Ads More Accessible
Meanwhile, a report from Adweek offered up more good news for Disney, particularly as its content continues to enjoy a bit of a renaissance in its own right. Disney makes it a little easier to pick up advertising with a new biddable ad tool for both live sports and entertainment options.
Disney brought the new tool out to the Consumer Electronics Show (CES) event in Las Vegas, with several platforms—including Google (GOOGL) Display & Video 360 and Yahoo DSP—able to use the platform thanks to new certifications. This comes in particularly handy for events requiring high agility, like when a sporting event goes into overtime play. This allows for “dynamic pricing” or similar measures to kick in, and gives the broadcaster some extra potential revenue opportunity as well.
Is Disney Stock a Buy or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on DIS stock based on 16 Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 22.72% rally in its share price over the past year, the average DIS price target of $125.72 per share implies 12.91% upside potential.
