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.”
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 …
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