BofA On Disney: Global OTT Expansion Plans At Risk
Five executives from Walt Disney Co’s (NYSE: DIS) 5 Star India business have announced their resignations, adding uncertainty and elevating risk to the company’s global over-the-top expansion plans, according to BofA Securities.
The Walt Disney Analyst: Jessica Reif Ehrlich maintained a Buy rating on Disney with a $146 price target.
The Walt Disney Thesis: The company is expected to provide details of its Star-branded international entertainment OTT offering — which is scheduled for a 2021 launch — during its Dec. 10 analyst day, Ehrlich said in a Tuesday note.
“In our view the departures of the Star executives (who have had tremendous success) comes as a surprise, creating uncertainty around the strategic direction and a management void at Star,” the analyst said.
"Despite near term COVID pressures, we believe DIS is ultimately well positioned to grow from a faster Disney+ rollout, launch of a Star branded intl. OTT offering in CY21E and LT theme park margin potential."
DIS Price Action: Shares of Walt Disney were trading 3.43% higher at $124.25 at last check Tuesday.
Courtesy photo.
Latest Ratings for DIS
Date | Firm | Action | From | To |
---|---|---|---|---|
Jan 2021 | Citigroup | Maintains | Buy | |
Dec 2020 | Wells Fargo | Maintains | Overweight | |
Dec 2020 | BMO Capital | Downgrades | Outperform | Market Perform |
View More Analyst Ratings for DIS
View the Latest Analyst Ratings
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted-In: BofA Securities Jessica Reif EhrlichAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga