Key TakeawaysJPMorgan Chase CEO Jamie Dimon on Wednesday chimed in on Disney's battle with activist investor Nelson Peltz, calling Disney CEO Bob Iger "a first-class executive and outstanding leader."Peltz's firm Trian Fund Management has nominated Peltz and former Disney chief financial officer Jay Rasulo to the company's board in its second proxy battle with the entertainment giant in a little over a year.In an appeal to shareholders, Disney on Monday attacked Peltz's record and alleged his efforts to joi ...

Investment Rating - The report assigns a "Buy" rating to Walt Disney Company (DIS US) with a target price of $142, representing a 26.4% potential upside from the current price of $112.3 [1][2] Core Views - Disney is expected to benefit from the growth of streaming and sports sectors, driven by its extensive content ecosystem, iconic IPs, and diversified product portfolio [1] - The company's streaming losses narrowed better than expected in 1QFY24, and management expects streaming to achieve profitability by 4QFY24 [1] - Disney is projected to achieve a 5% revenue CAGR and 16% profit CAGR from FY24 to FY26, supported by advertising-tier membership penetration, shared subscription plans, Hulu synergies, and resilient theme park growth [1] - The sports business, particularly ESPN+, is seen as a long-term growth engine, with potential from strategic partnerships and standalone app launches [1] Business Segments Streaming (DTC) - Disney+ reached 150 million paid subscribers in 1QFY24, with a projected 4% CAGR in subscriber growth from FY24 to FY26 [1] - The streaming business is expected to achieve breakeven in 4QFY24 and deliver double-digit operating margins in the long term [1] - Key growth drivers include rich content library, advertising-tier memberships, shared subscriptions, and Hulu synergies [1] Theme Parks - Theme parks remain a cash cow for Disney, contributing approximately 2/3 of the group's operating profit in FY24 [1] - International parks are expected to maintain steady growth, while US parks are projected to accelerate revenue growth in 2H24 [1] - The segment is forecasted to deliver a 10% operating profit CAGR from FY24 to FY26 [1] Sports (ESPN+) - ESPN+ is positioned to capture growth in the digital sports market, leveraging rising streaming penetration and strong demand from sports enthusiasts [1] - Strategic partnerships and standalone app initiatives are expected to drive long-term growth in this segment [1] Financial Projections - FY24 revenue is projected at $91.8 billion, with a 3.3% YoY growth, while adjusted net profit is expected to reach $8.5 billion, a 23.9% YoY increase [5] - FY24 EPS is forecasted at $4.62, representing a 23.4% YoY growth [5] - Free cash flow is expected to reach $8 billion in FY24 [1] - The company's long-term operating margin for theme parks is projected to exceed 25% [1] Valuation - The SOTP-based target price of $142 implies a FY24 P/E of 30.7x, which is 14% lower than Netflix's valuation but slightly above the industry average [1][7] - Key valuation catalysts include streaming profitability, content-driven subscriber growth, resilient theme park performance, and sports business potential [1][6] Peer Comparison - Disney's FY24E P/E of 23.8x is lower than Netflix's 35.5x but higher than Comcast's 10.2x [11] - The company's FY24-26 EPS CAGR of 16% is higher than the industry average of 17% [11]

Walt Disney Co (NYSE: DIS) is in the green at writing after Jamie Dimon of JPMorgan Chase & Co (NYSE: JPM) endorsed Bob Iger as chief executive of the entertainment conglomerate.Disney is in a proxy battle with Trian PartnersCopy link to sectionIger has been in a proxy battle with Nelson Peltz of Trian Partners for months. Peltz is disappointed in Disney’s leadership and is seeking to be nominated on its board. Still, Jamie Dimon – the chief executive of $JPM told CNBC’s David Faber today:Bob is a first-cla ...

Disney CEO Bob Iger speaking with CNBC's David Faber at the Allen&Co. Annual Conference in Sun Valley, Idaho.JPMorgan Chase CEO Jamie Dimon endorsed Disney CEO Bob Iger in his proxy battle with activist Trian Partners, CNBC's David Faber has learned.Dimon gave the following statement on Iger to Faber:"Bob is a first-class executive and outstanding leader who I've known for decades. He knows the media and entertainment business cold and has the successful track record to prove it. It's a complicated industry ...

Investment Rating - The report initiates coverage on Walt Disney Co with a BUY rating and a target price of US$142, implying a 28.7% upside from the current price of US$110.3 [4][5]. Core Insights - The report highlights that Disney is expected to benefit from streaming and sports industry tailwinds, alongside cost control initiatives. The company has shown significant improvement in streaming losses and operational efficiency, with management guiding for an EPS of US$4.6 (+22% YoY) and free cash flow of US$8 billion in FY24E. Streaming profitability is anticipated by 4QFY24E, with projected revenue and earnings CAGR of 5% and 16% respectively from FY24-26E [2][3][28]. Company Overview - Established in 1923, Disney is a global entertainment and media conglomerate with a diversified portfolio that includes film production, theme parks, and streaming services. The company is currently prioritizing its streaming and ESPN segments, supported by cash flow from its Experiences business [12][17]. Streaming and Sports Growth - Disney+ has reached 150 million paid subscribers as of 1QFY24, with expectations for continued growth driven by strong content, AVOD initiatives, and paid-sharing strategies. The report forecasts a 4% CAGR in Disney+ subscribers from FY24-26E, with net adds of 5.5-6 million expected in 2QFY24E [2][20][38]. Parks and Experiences - The Parks segment is projected to be a significant cash generator, contributing approximately two-thirds of the Group's operating income in FY24E, with an expected 10% CAGR in operating income from FY24-26E. Revenue from US parks is anticipated to accelerate in the second half of FY24E [2][3][9]. Financial Performance - For FY24E, Disney's revenue is expected to reach US$91.8 billion, with a YoY growth of 3.3%. Adjusted net profit is projected at US$8.5 billion, reflecting a 23.9% increase YoY. The diluted EPS is forecasted to be US$4.62, a 23.4% increase YoY [3][4]. Valuation Metrics - The report sets a target price based on a sum-of-the-parts (SOTP) valuation, implying a P/E ratio of 30.7x for FY24E, which is 14% below Netflix's valuation but slightly above the industry average [2][4]. Key Catalysts - The report identifies several key catalysts for Disney's growth, including the upcoming breakeven on streaming, strong net subscriber additions, resilient performance in parks, and progress in the sports segment [2][3][4].

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Disney (DIS 1.80%) is the largest name in global entertainment, and that's not limited to its unmatched theme parks. It has an equally impressive content library, most of which is available to watch on its flagship Disney+ premium streaming channel.Although streaming is an incredibly crowded field, Disney quickly became a leader in the space, and it remains one to this day. However, skyrocketing expenses in the streaming business led to a major shakeup at the company last year with Bob Iger regaining the ti ...

Disney CEO Robert Iger attends the 95th Annual Academy Awards at the Dolby Theatre in Hollywood, California on March 12, 2023.Activist investor Blackwells said Monday that Disney's board had not disclosed that shareholder ValueAct Capital had a financial relationship with the entertainment company, putting the firm's endorsement of Disney's board under scrutiny.Mason Morfit and his $12 billion investment firm ValueAct were heralded as "constructive" shareholders by Disney CEO Bob Iger in January, when the c ...

Urges Shareholders to Disregard ValueAct's Endorsement of the Board Questions Whether the Board Violated ERISA laws as well as Disney's Code of Ethics NEW YORK, March 11, 2024 (GLOBE NEWSWIRE) -- Blackwells Capital LLC (together with its affiliates, "Blackwells" or "we") today issued a letter to fellow shareholders regarding the need for boardroom enhancement at The Walt Disney Company (NYSE:DIS). We invite all shareholders to learn more about our nominees and mission at www.TheFutureOfDisney.com. The full ...

Parkev Tatevosian, CFA has positions in Walt Disney. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...