Walt Disney Co (NYSE: DIS) ended roughly flat on Monday even after a Wells Fargo analyst said it was his top pick in media stocks.
Disney stock could climb to $145
Things will be more exciting, though, for this entertainment conglomerate if his forecast proves to be true. Steven Cahall is recommending buying Disney stock as he sees upside in it to $145. That’s more than a 40% upside from here.
The multinational mass media company, he argues, is the best-positioned versus peers to benefit from the transition to DTC. Attractive valuation was among other reasons cited for the constructive view.
Disney is expected to report its Q4 results on November 8th. Consensus is for it to earn 60 cents a share this quarter versus 37 cents a year ago.
In August, Invezz reported activist investor Dan Loeb to have taken a position in the Walt Disney Co.
Kevin O’Leary agrees with the bullish call
Kevin O’Leary also dubs the Disney stock a great way to play “streaming” that will continue to win share from standard network and cable. Agreeing to the overweight rating on CNBC’s “Halftime Report”, he said:
I think Disney has done its transition. They clearly know how to monetise. They have the pricing power. They have the content. I also still like the themes and parks business. So, I like Disney and have added to it.
Mr Wonderful is also bullish on peer Netflix Inc (NASDAQ: NFLX) that’s still down more than 50% for the year.
These two, he added, were the “grand daddy” of streaming stocks on content slates that were far superior (both in terms of quantity and quality) versus the rest of the players in this space.
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