Here’s Why We’re Calling Bottom For Disney

Summary:

  • The Disney stock has been trading at new lows, as investors mull on the prospects of its linear-to-DTC transition amid an accelerating pace of cord-cutting and intensifying streaming competition.
  • Recent news on Disney’s doubled capex commitment to parks amid the already capital-intensive linear-to-DTC transition is also weighing on confidence in the company’s FCF prospects.
  • However, the Disney stock creates a compelling risk-reward opportunity at $80 apiece, which in our opinion already captures company-specific and broader industry and macroeconomic considerations.

Minnie and Mickey Mouse ride Disney Parks float

Bastiaan Slabbers

The Disney stock (NYSE:DIS) has been consistently closing at new lows over the past six months. Despite breaching a floor that hasn’t been seen for nine years in late August, the downtrend has continued through September. Investors’ confidence


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