Goldman Sachs analysts recently had some good things to say about Disney (NYSE:DIS) after starting coverage on the media and entertainment powerhouse. But investors weren’t feeling that same magic, and shares were down fractionally in Tuesday afternoon’s trading. Goldman Sachs kicked off coverage by declaring the stock a Buy with a price target of $125 per share, a substantial premium over where it’s currently trading.
This is thanks in large part to its “content pipeline,” which will ultimately help drive growth in the near- to mid-term. There’s certainly opportunity to be had, particularly in terms of direct-to-consumer content. Though the consumer has been a bit sluggish lately due to soaring inflation, there’s still room for opportunity, especially from a company like Disney, which has decades of name recognition on its side.
That Content Might Be a Problem
However, that content pipeline could prove to be more of a headache than a value driver, especially after comments were made by Elon Musk. The controversial CEO declared that the latest release of the “Star Wars” franchise titled “The Acolyte” was stuffed full of “woke” propaganda, further asserting that current Lucasfilm boss Kathleen Kennedy is “more deadly than the Death Star” and “super bigoted against men.”
Despite the admittedly divisive nature of “The Acolyte,” Disney is still the frontrunner in terms of programming distribution, currently the leader ahead of YouTube in the May Nielsen rankings.
Is Disney a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 21 Buys and five Holds assigned in the past three months, as indicated by the graphic below. After a 15.36% rally in its share price over the past year, the average DIS price target of $128.88 per share implies 26.29% upside potential.
