DIS - Disney Stock: Potential Upside But Some Risks

2024-01-26 02:27:36 ET

Summary

• I believe that the recent recovery rally in Disney stock is just the beginning of a larger reversal move.
• Disney's focus on streaming and cost-cutting measures are expected to improve its financial standing and narrow the discount in its valuation, in my opinion.
• Potential partnerships with the NFL could benefit ESPN and lead to cash flow benefits for Disney, which seems like an ignored upside.
• I am waiting for a re-rating in Disney's valuation, seeing an upside potential of ~27.54% to the current price of $93.5.
• Despite some serious risks, I rate DIS as a 'Buy' today.

My Thesis

I think that the modest recovery rally in The Walt Disney ( DIS ) stock that we have seen since November 2023 is just the beginning of a massive reversal move in the stock....

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