Needham analyst Laura Martin has reiterated their bullish stance on DIS stock, giving a Buy rating on September 17.
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Laura Martin’s rating is based on several strategic considerations regarding Walt Disney’s operations. She suggests that Disney should consider shutting down ABC rather than selling it, as the potential value destruction is minimal relative to Disney’s overall market capitalization. This move could potentially reveal Disney’s faster-growing revenue segments, thereby enhancing the company’s valuation and increasing its overall value by approximately 10%.
Additionally, Martin points out that the regulatory risks associated with maintaining ABC are becoming increasingly costly, especially with the accelerated timelines brought about by generative AI. By eliminating these regulatory challenges, Disney could focus more on its unregulated platforms like Hulu, which may preserve and potentially increase its revenue streams.
In another report released on September 17, Barclays also maintained a Buy rating on the stock with a $140.00 price target.