Disney is 'significantly undervalued,' KeyBanc says, sees 40% upside

seekingalpha2021-12-14

Walt Disney (NYSE:DIS) shares are 'significantly undervalued' at current levels, KeyBanc Capital Markets analyst Brandon Nispel argues, saying the company's investments over the short and medium-term will pay off in the long run.

Nispel, who has an overweight rating and a $216 price target on Walt Disney (DIS), implying more than 40% upside, believes that 2022 will be an investment year, but total revenue will grow at 15% annually and operating income will grow at 36% annually over the next three years.

"At current levels, investors significantly under-appreciate DIS's growth potential and likely apply severe discounts to publicly traded peers," Nispel wrote in a note to investors.

Walt Disney (DIS) shares are down nearly 2% to $149.90 on Monday and have lost more than 15% year-to-date.

Looking at Disney's (DIS) 10-K, the analyst expects the company to boost capital expenditures to $6.1 billion in both media and parks in 2022, up $2.5 billion from 2021.

Content spend is expected to jump 32% to $33 billion in 2022, which should help Disney's direct-to-consumer business, as they expect 50 studio titles, versus 15 to 20 in 2021, including 20 theatrical releases in 2022, compared to 15-20 in fiscal 2021.

SiriusXM (NASDAQ:SIRI) has reportedly hired Joe Inzerillo, formerly the chief technology officer of Disney+ streaming service, as the company's chief product and technology officer.

免责声明:本文观点仅代表作者个人观点,不构成本平台的投资建议,本平台不对文章信息准确性、完整性和及时性做出任何保证,亦不对因使用或信赖文章信息引发的任何损失承担责任。

精彩评论

发表看法
1