DIS - ESPN Is Crowned Jewel But Disney Faces Earnings Pressure Analyst Says | Benzinga
Needham analyst Laura Martin reiterated a Hold rating on Walt Disney Co (NYSE: DIS).
The re-rating reflects Martin's belief that consensus estimates for DIS are too high owing to DTC losses and another year of weak earnings from linear TV and box office.
Martin is worried that the Hollywood strikes and the recent carriage dispute with Charter Communications, Inc (NASDAQ: CHTR) indicate that DIS and other studios have been "over-earning" in the past. Now, their value chains want a larger revenue share.
Also Read: Charter's Future Brightens With Disney Deal And Network Upgrades: Analyst
Also, $60 billion of capital spending at Parks & Resorts implies rising capital intensity and downside risk to DIS's valuation multiple.
Longer-term, Martin said that DIS's asset mix of ...