- Truist analyst Matthew Thornton reiterated a Buy rating on Walt Disney Co DIS with a price target of $121. DIS will report 2Q results Wednesday after the close.
- The analyst provided his 'Top-10 Focal Points.' He expects reaffirmation of the FY23 outlook for high single-digit growth in revenue and Special Olympics International partnership, low $30 billion content spend, $6.0 billion in capex, and a small dividend by year-end.
- The analyst expects an update on the sizing or timing of the $4.5 billion incremental cost reduction, including ≥$1.5 billion non-content by FY24 and $3.0 billion content ex-sports starting FY24.
- He sought updates on ESPN's new broken-out segment reporting, sports rights strategy, and ways to lean further into sports betting.
- The analyst wanted to know whether Hulu was staying or going. An update on the general entertainment portfolio and content curation, including potential cost savings from consolidating Hulu and Disney+ (and ESPN+) apps or the opportunity for Hulu to shift to a hybrid network/platform similar to ESPN+.
- For Disney+, updates on international AVOD, including timing, markets, and pricing.
- For Parks, the impact of curbing ticketing restrictions (from the pandemic) at Walt Disney World, Florida parks.
- The analyst still expects Networks Y/Y decline to be "significantly" less in the fiscal second half versus the fiscal second quarter.
- He expects strong Disney Parks, Experiences, and Products and mixed Disney Media and Entertainment Distribution.
- Price Action: DIS shares traded lower by 1.12% at $101.07 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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