Disney: the stock rises, UBS raises its target price
March 27, 2024 at 11:24 am EDT
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Disney shares rose on the New York Stock Exchange on Wednesday, after UBS raised its price target on the stock.
In a study released in the morning, the research firm said it had raised its target on the stock from $120 to $140, citing several sources of upside potential within the media group.
According to UBS, the entertainment giant could generate average annual earnings growth of around 25% over the next three years, thanks in particular to the improved performance of its theme park and video streaming divisions.
The analyst also cites the prospect of an increase in the content business, driven by a recovery in licensing revenues and income from upcoming box office releases.
UBS thus expects the company's cash flow (FCF) to reach $9 billion by 2024, rising to $14 billion by 2026, which should support share buybacks, dividend increases and new investments.
At 11:15 a.m. (New York time), the stock was up 1%, while the S&P 500 was up 0.3%.
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The Walt Disney Company is a media and entertainment group. Net sales (including intragroup) break down by activity as follows:
- operation of theme parks and hotel resorts (33.9%): operation, as of 01/10/2022, of 10 theme parks (35 hotels) located in the United States (Walt Disney World Resort, Disneyland Resort and Aulani; 6 theme parks and 23 hotels), France (Disneyland Paris; 2 theme parks and 7 hotels), Japan (Tokyo Disney Resort; 2 theme parks and 5 hotels), Hong Kong (Hong Kong Disneyland; 1 theme park and 3 hotels) and China (Shanghai Disney Resort; 1 theme park and 2 hotels). The group is also involved in cruise sales (Disney Cruise Line), travel organization (Disney Vacation Club and Adventures By Disney), design and development of parks and other real estate properties, and sale of consumer products (children's books, toys, game software, films, etc.);
- operation of TV and radio channels (33.4%): domestic channels (Disney Channels, ESPN, ESPN Radio, Freeform, FX Channels and National Geographic Channels) and international channels (Disney, ESPN, Fox, National Geographic and Star). The group is also developing film post-production and website operation businesses;
- video streaming (23.1%);
- audiovisual content production and distribution (9.6%): TV programs, animated films, TV series, music, live entertainment, etc.
Net sales are distributed geographically as follows: Americas (81.5%), Europe (10.4%) and Asia/Pacific (8.1%).
WALT DISNEY COMPANY (THE) 
