Disney Parks unit will remain largest contributor, says JPMorgan

JPMorgan analyst David Karnovsky estimates Disney’s (DIS) Parks and Experiences business will remain the company’s largest revenue and operating income contributor for the foreseeable future even as streaming scales and grows margin. The firm is bullish on the long-term earnings power of the segment as capex is deployed into new capacity and cruises, and pricing is further refined. While the macro environment remains a consideration in examining any consumer discretionary business, a deeper look at Disney’s operation “is revealing for how much remains in the company’s control,” the analyst tells investors in a research note. JPMorgan keeps an Overweight rating on Disney with a $130 price target