© Reuters. Walt Disney (DIS) dips as analyst cuts to Neutral on near-term uncertainties
Macquarie analysts downgraded shares of Walt Disney (NYSE:) to Neutral from Outperform as they see near-term uncertainties weighing on earnings, valuation, and sentiment.
The new price target is $103 per share, about 10% above the current market price.
“We still appreciate Disney’s ability to successfully transform to a DTC-first streaming business over time, but now see more interim uncertainties,” analysts wrote in a client note.
The analysts noted that Linear networks are getting worse, which will likely place additional pressure on the company to make its streaming business profitable. They see a scenario for extended DTC operating losses beyond FY’24.
“On top of this, Parks growth is set to slow from here, removing a recent support,” analysts further added.
The ESPN business is another issue but analysts say the NBA rights renewal “ may be a catalyst for an ESPN OTT future.”
Walt Disney shares are down about 1% in pre-market Friday.
This story originally appeared on Investing
