Bernstein Disney Stock Price Target Increases Following Hulu Takeover

Disney shares have been making waves lately, and Bernstein has some positive news for investors. The investment firm has bumped up its price target for Disney to $125 from $120 per share, suggesting a potential 5% increase. Analyst Laurent Yoon is still feeling optimistic about Disney shares, maintaining an outperform rating.

Yoon’s analysis points to even more growth, with the potential for Disney stock to hit $132, about 11.2% higher than where it closed on Tuesday. He highlights the growth in Parks, the expanding margin of Direct-to-Consumer services, the enduring presence of Sports, and the profitability of Linear, despite its decline.

Disney’s stock performance has been a bit of a roller coaster over the past few years, swinging between lows of around $80 and highs of around $120 multiple times. Yoon acknowledges that the journey hasn’t been smooth for everyone, but some investors have found opportunities in the fluctuations.

Another positive development for Disney is its agreement to pay Comcast an additional $438.7 million to secure full control of Hulu. This move led Loop Capital to raise its forecast for Disney to $130 from $125 per share. Even better, this payment is significantly lower than the potential liability of around $5 billion, showing good financial management on Disney’s part.

Disney has already paid Comcast $8.6 billion for its 33% stake in Hulu. The stock has seen a 7% increase so far this year, with a whopping 20% surge in the most recent quarter. The majority of analysts are feeling bullish about Disney, with 26 out of 33 analysts giving the stock a buy or strong buy rating.

Overall, it seems like Disney’s future is looking bright, and investors might have some promising opportunities ahead as the company continues to expand and evolve in the streaming entertainment industry.