Deutsche Bank analyst Bryan Kraft upgraded shares of Walt Disney Co. (DIS) to buy from hold Tuesday, writing of his confidence in the company's execution on its direct-to-consumer (DTC) strategy. The company has "the most clear path to successfully transitioning its general entertainment programming and content production businesses into a globally scaled, vertically integrated streaming entertainment leader," Kraft wrote. "The clearest sign that Disney is succeeding in transitioning its business model, aside from the impressive subscriber results, has been management's decision to shut down some of its traditional networks in international markets, including the UK," he continued, as Disney has seen willing to write down the goodwill associated with such moves. This strikes Kraft as "a sign of confidence that DTC will more than offset lost network revenue." He raised his price target on the stock to $163 from $128. Disney shares are up 3.6% in Tuesday trading. The shares have rallied about 7% over the past three months as the Dow Jones Industrial Average has gained 0.6%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 08, 2020 11:18 ET (15:18 GMT)
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