Loop Capital Slashes Disney Price Target By 7.3%; Remains Bullish

Loop Capital analyst Alan Gould lowered the price target on The Walt Disney Co DIS to $190 from $205, implying a 28.5% upside, but reiterated a Buy. 

• The company disclosed a much more significant planned increase in content spend than previously anticipated, which should pressure Disney+ profits over the next couple of years and help the company hit its 230 million - 260 million subscriber target.
• However, he believes that streaming will continue to take share from linear viewing rapidly and that Disney has the content, brands, and service to be one of the global winners.
• Disney has reached 100 million subscribers across its streaming services, Disney+, Hulu, and ESPN+, Ampere Analysis reports. 
• Ampere sees the U.S. subscriber count hitting the 108 million mark before the year ends.
• However, Disney+ is experiencing its slowest growth since the streaming service launched two years ago. 
• By the end of 2021, Disney+ and Hulu will likely breach the mark of 50 million subscribers each. 
• ESPN+ will likely have over 20 million subscribers within that same time frame. 
• Price Action: DIS shares traded lower by 1.51% at $145.58 in the premarket session on the last check Tuesday.