UBS Upgrades Walt Disney (DIS) to Buy, $200 SOTP Valuation

(Updated - January 22, 2021 6:13 AM EST)

UBS analyst John Hodulik upgraded Walt Disney (NYSE: DIS) from Neutral to Buy with a price target of $200.00 (from $155.00), citing sum of the parts valuation and expectations for continued strength in DTC.

The analyst comments "We are upgrading Disney to Buy from Neutral with a $200 PT based on our SOP valuation & expectations for continued strength in DTC. We believe Disney is positioned to achieve scale similar to industry leader Netflix with 340M+ global subs by '24 (vs. UBS analyst Eric Sheridan's forecast of 316M at Netflix) while its premium IP creates pricing power and enables the company to spend less per sub on content, driving better economics over time. We now expect DTC revenues to reach $43B in FY24, above our prior $27B and the street's ~$35B, with profitability in FY23. We believe this will support a DTC valuation similar to Netflix while Parks become a beneficiary of vaccine availability & pent-up demand for leisure travel in 2H21."

For an analyst ratings summary and ratings history on Walt Disney click here. For more ratings news on Walt Disney click here.

Shares of Walt Disney closed at $171.28 yesterday.

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