As of September 24, of the 25 analysts that cover Disney (DIS) stock, 12 gave it a “buy” rating, while an equal number of analysts provided a “hold” recommendation. Only one analyst gave the stock a “sell” recommendation.
The graph above shows analysts’ ratings. There weren’t any “overweight” or “underweight” recommendations on the stock.
The average target price for Disney is $120.54 as of September 24. The company’s closing price was $110.4 on the same date. Disney has generated returns of 11.64% in the last one year, but it declined 1.77% in the last month. Currently, it is trading 14.05% higher than its 52-week low of $96.8 and 6.36% lower than its 52-week high of $117.9. In the last one week, the stock gained 1.04%, whereas Viacom (VIAB), CBS (CBS), and Fox (FOXA) have generated returns of 8.44%, 1.59%, and -1.07%, respectively, in the last week.
Justifying analyst ratings
The ongoing acquisition of Fox’s assets may act as a strong catalyst for Disney going forward. The acquisition gives the media giant access to both Sky and Star networks in Europe and India. Moreover, popular movie franchises like X-Men and Avatar will also be added to Disney’s film portfolio.
The company’s film business is also showing strong growth momentum driven by hit movie releases from Marvel, Lucas, and Pixar. The business has a strong movie pipeline that includes Avengers: Infinity War 2 and Star Wars: Episode IX, which are slated to be released in the upcoming quarters. Even the company’s DTC (direct to consumer) business can be a game changer for Disney. The newly launched ESPN+ app in April 2018 has already gotten over one million subscribers.
However, increasing competition from other video streaming companies coupled with the integration risk associated with the ongoing Fox asset acquisition has caused some analysts to remain skeptical.