Disney's content slate is seen showing signs of a major turnaround
Bank of America reiterated a bullish view on Walt Disney Company (NYSE:DIS) on Tuesday.
Analyst Jessica Reif Ehrlich and her team believe Disney (DIS) will outperform peers in FY24 as a result of recent price increases across the Disney+/Hulu/ESPN+ universe, strong advertiser demand for the recently launched ad-supported tier on Disney+, cost discipline across the direct-to-consumer business, and continued robust theme park demand with several levers for future growth. "Notably, the return of Bob Iger could significantly boost investor sentiment and introduces a potential catalyst in the form of a new strategic direction," highlighted Ehrlich.
Crucially, BofA also thinks the content slate is showing signs of a turnaround after Inside Out 2 surpassed $1 billion at the global box office in its first three weeks. Disney (DIS) is noted to be attempting to strike a better balance of originals and leveraging IP with the studio business. Looking ahead, excitement is seen building around upcoming titles including Deadpool & Wolverine, Moana 2, and Mufasa: The Lion King.
On Seeking Alpha, Investing Group Leader Long Player has a Strong Buy rating on Disney (DIS). "Most of the parks business is at record levels and the cruise ship business is booming as well," noted Long Player.
Shares of Disney (DIS) are up 8.6% on a year-to-date basis.