One analyst cuts Disney’s price target, another reiterates buy rating: who’s right?
Walt Disney Co. SAY was featured as the call of the day Tuesday on CNBC’s “Fast Money Halftime Report.”
Clash of analysts: BMO reiterated Disney with a Market Perform rating and reduced the price target from $175 to $140.
Deutsche Bank reiterated Disney with a buy rating and price target of $191.
Who is right ? Chevrolet Chase Trust Amy Raskin On Tuesday, he sided with Deutsche Bank. Despite the stock’s dramatic underperformance over the past year, she expects the company to turn things around.
Disney is trading around 23 times forward earnings, which is “really cheap” on a historical basis, Raskin said, but it remains out of favor.
“We like it here,” she said. “I think the fundamentals are pretty good.”
The company is poised to continue to benefit from reopening, Raskin said. Plus, Raskin doesn’t think Disney will face the same issues as Netflix Inc. NFLX deals in terms of subscriber losses.
See also: ‘It’s only going to get worse:’ Apple’s privacy changes are impacting Netflix, says Palihapitiya
Disney is expected to report its fiscal second quarter financial results after the market closes on May 11.
DIS Price Action: Shares of Disney are down about 37% in the past year and nearly 25% year-to-date.
According to data from Benzinga Pro, the stock was down 2.46% at $117.00 at press time.