According to Wells Fargo, Disney’s estimates are still too high when the recession hits. Analyst Steven Cahall wrote in a note to clients on Monday: “We are still DIS bulls and think upcoming catalysts including Disney+ net make more progress than expected. investors, as well as potentially launching ESPN+ entirely on a la carte basis.” “That’s not all positive, though, as we’re also making the necessary cuts to Disney+ subs, DPEPs, and ads for the recession. We think the estimates need a reset to get to that point.” harmonize them with stock prices.” Cahall cut the bank’s price target on the entertainment giant to $130 a share to reflect these concerns, while also slashing its Disney+ subscriber estimate to 213 million words 240 million for fiscal year 2024. He also updated his estimates for Disney’s parks segment and ad sales to reflect lower attendance and slowing demand in a weak macro environment. least. According to Cahall, while Disney shares are down 34% this year, most of that drop has been related to streaming, despite recession concerns and headlines related to the company’s CEO.” no help” for the situation. Despite the cuts, Wells Fargo is still more than enough for Disney, which is seen as a growth company with a strong content portfolio. The bank’s new price target implies that the stock has a potential 27% upside from late Friday. “We still think more content = more subscribers, and that should drive the stock up because investors have eliminated the ability to generate more streaming hits,” Cahall writes. DIS. – CNBC’s Michael Bloom contributed reporting
