DIS - Disney: Current Price Expectations Imply Lucrative Upside
2024-05-26 03:45:35 ET
Summary
- While sentiment remains low, the underlying business model remains strong with continued consumer engagement in parks, streaming services, and sports.
- Diversified streaming offerings across Disney+, Hulu, and ESPN create the optimal streaming package and allow for a strong competitive advantage.
- Management's large-scale investment across the Experiences segment illustrates confidence in both growth and stability.
- Current pricing infers a positive risk-to-reward ratio and significant margin of safety. Even assuming certain negative scenarios still provide potential upside.
Introduction
Disney ( DIS ) sentiment is arguably at an all-time low, with many long-term investors losing faith in the company. This is attributable to issues across management, activist investors, consumer weakness, linear television decline, and much more. The problem is, I have failed to see anything substantially affect the underlying business model. Consumers continue to visit Disney parks, continue subscribing to both Hulu and Disney+, and continue using the ESPN platform....
Disney: Current Price Expectations Imply Lucrative Upside