Disney: share down, as Jefferies monitors with 'hold' rating

(CercleFinance.com) - On Thursday, Disney shares fellin New York, penalized by a note from Jefferies, which initiated its coverage of the stock with a 'hold' recommendation.
The stock closed down 0.4% at $116.5, vs. a target price of $120.

The broker said it was optimistic about the US media and entertainment giant's DTC business, which includes the Disney+ video-on-demand platform.

In its view, the decision to combine offerings, raise prices, use advertising revenues, invest in content and exercise cost discipline should pay off in terms of profit margins between now and 2026.

The broker is more cautious, however, about the outlook for the theme park division, which expects business to accelerate in H2 2024/2025.

Jefferies also notes that recent theme park sales growth has been driven more by price increases (+5%) than by growth in attendance volume (+2%).


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