Disney's Streaming Surge, Epic Games Deal Among Key Growth Drivers, Says Analyst
Needham analyst Laura Martin reiterated a Buy rating for Walt Disney Co DIS with a $110 price target.The re-rating is based on:• Direct to Consumer (DTC) breakeven in fiscal 2024 with “double-digit” margins at maturity.• 5.5 million to 6 million new subscribers from Charter Communications, Inc CHTR starting in the second half of fiscal 2024.• Disney’s $1.5 billion investment in Epic Games (to build Disney video games).• 70% of $60 billion Parks CapX will be “incremental capacity” leading to a revenue boost. ...