Disney: stock up as UBS raises TP

(CercleFinance.com) - Disney shares rose 1% in New York on Wednesday, after UBS raised its target price for the stock.


In its morning comments, the broker raised its target price for the stock from $120 to $140, citing several sources of upside potential within the media group.

According to UBS, the entertainment giant could generate average annual earnings growth of around 25% over the next three years, in particular thanks to the improved performance of its theme park and video streaming divisions.

The analyst also cites the prospect of an increase in the content business, driven by a recovery in licensing revenues and income from upcoming box office releases.

UBS thus expects the company's cash flow (FCF) to reach $9 billion by 2024, rising to $14bn by 2026, which should support share buybacks, dividend increases and new investments.


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