[Analyst Rating] Disney Had The Content, But The Media Giant Is Now Proving It Can Build A Streaming Service

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Wall Street applauded late last year when Walt Disney Co. (NYSE: DIS) quickly signed up 10 million subscribers for its new Disney+ streaming service. Tuesday's encore presentation brought a standing ovation.

Disney's announcement that it had more than 26 million subscribers at year-end and CEO Bob Iger's announcement on the earnings call that it was now up to 28 million led sell-side analysts to praise the streaming service and predict even higher earnings to come for the House of Mouse.

“After two and half months in the US and a handful of international markets, Disney+ is run-rating at nearly $2 billion in revenue and should surpass the $2.8 billion exit-rate we estimated at FYE20,” wrote Morgan Stanley analyst Benjamin Swinburne. “While admittedly early, this reinforces our view EPS can approximately double from FY20 to FY24.”

See Also: Disney Streaming Service Tops 26M Subscribers, Company Beats Earnings Estimates

The Disney Analysts

Morgan Stanley's Swinburne kept an Overweight rating on Disney with a $170 price target.

Rosenblatt's Bernie McTernan reiterated a Buy rating and raised the target price from $175 to $180.

UBS analyst John Hodulik has a Buy rating and $162 price target on the stock and raised his fiscal 2020 EPS estimate from $5.36 to $5.50.

Bank of America's Jessica Reif Ehrlich reiterated a Buy rating and $168 price target.

Needham's Laura Martin has a Hold rating on the stock.

Tigress Financial's Ivan Feinseth continues to recommend a Buy.

The Disney Theses

The earnings and revenue news for the company as …

Full story available on Benzinga.com

Source Benzinga

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