Bank Of America Adds Disney To 'US 1' List, Lifts Price Target To $168

Jayson Derrick

Tue, Apr 23, 2019, 9:33 AM

In this article:

Walt Disney Co (NYSE: DIS) deserves credit for a successful introduction to its streaming video platform, but a combination of other factors prompted Bank of America to name the stock a top investment idea.

The Analyst

Bank of America's Jessica Reif Ehrlich added Disney's stock to the research firm's "US 1 list" with a price target lifted from $144 to $168.

The Thesis

Disney's new streaming platform Disney+ launch has yet to launch but the compelling offering could be a notable value driver of shareholder growth, Reif Ehrlich said in a research report. The platform is backed by high-quality content, an expanded library of original programming, a competitive pricing point and a go-to-market strategy that leverages all of Disney's assets across the world.

Other factors that prompted the research firm to turn more bullish on the stock include:

Continued momentum and traction at other streaming platforms including Hulu and ESPN+.
Multiple high-profile releases ahead, including "Avengers" on April 26, "Toy Story 4" in June and "The Lion King" in July.
Parks, Experiences & Consumer Product trends remain favorable and backed by favorable trends ahead of Walt Disney World's 50th anniversary in fiscal 2022.
Synergies from the acquisition of most of Fox's assets can generate $2 billion in cost savings by fiscal 2021.
Once gross leverage returns to 1.5-2 times, the company could resume capital returns.

Price Action

Shares of Disney were trading higher by 1.3 percent at $133.50 Tuesday morning.

What Wall Street Is Saying About Disney+

Latest Ratings for DIS

Apr 2019	Maintains	Buy	Buy
Apr 2019	Upgrades	Sell	Neutral
Apr 2019	Reinstates		Overweight

View More Analyst Ratings for DIS
View the Latest Analyst Ratings

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Bank Of America Adds Disney To 'US 1' List, Lifts Price Target To $168

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