Disney: shares open higher on UBS upgrade
(CercleFinance.com) - Disney shares rose on Friday after UBS upgraded its rating on the stock to "buy" from "neutral," saying that the company remains the best-positioned traditional media group to compete with Internet giants.
As video consumption moves online, Disney is well placed to achieve scale similar to industry leader Netflix, with over 340 million global subscribers by 2024, compared to UBS' forecast of 316 million subscribers at Netflix, the broker said.
UBS said it expects Disney's DTC streaming revenues to reach 43 billion dollars in 2024, well above Wall Street's 35 billion dollar forecast.
In the meantime, the business profitability of parks should rebound, as vaccines become more widely distributed, it said.
The entertainment and media powerhouse's shares climbed by 1.6% on Friday morning, outperforming a 0.6% drop in the Dow Jones index. UBS has raised its target price for the stock from 155 dollars to 200 dollars.
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