Star Wars Hotel Shutdown: Disney's Smart Move towards Cost Rationalization

Truist Securities analyst Matthew Thornton maintains Walt Disney Co DIS with a Buy and lowers the price target from $121 to $105.
Thornton lowered estimates post-2Q results, including factoring in accelerated depreciation of the to-be-shuttered Star Wars hotel in the second half of FY23.
He views consensus annual EPS as reasonable, but revenue is still a bit high.
The analyst views the potential upside from the $5.5 billion cost rationalization target, significant than expected price actions into FY24 and other Hulu outcomes, and further lean into sports betting.
Hulu’s parents, Disney and Comcast Corp CMCSA negotiated to end their troubled marriage. Comcast can require Disney, which owns two-thirds of Hulu, to buy its one-third stake, or Disney can require Comcast to sell under a deal starting in 2024.
Price Actions: DIS shares traded lower by 0.87% at $87.52 on the last check Tuesday.
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