Walt Disney (DIS – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Doug Creutz from TD Cowen reiterated a Hold rating on the stock and has a $123.00 price target.
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Doug Creutz has given his Hold rating due to a combination of factors surrounding Walt Disney’s recent performance and future outlook. Despite Disney surpassing expectations with its FQ1 EBIT and a slight beat in revenue, Creutz remains cautious given the unchanged fiscal year guidance. The successful launch of ESPN’s flagship service is seen as crucial for Disney’s direct-to-consumer strategy, adding an element of uncertainty.
Creutz highlights that while Disney’s Q1 revenue showed growth, with strong performance in entertainment and sports, challenges remain. Disney+ and ESPN+ subscriber losses, albeit close to estimates, reflect ongoing pressures in the streaming segment. Additionally, while domestic advertising revenue increased, there was a decline in domestic affiliate revenue. These mixed signals warrant a Hold rating as management continues to navigate the complexities of market dynamics and strategic investments in the cruise line expansion and ESPN’s digital initiatives.
Based on the recent corporate insider activity of 79 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DIS in relation to earlier this year.