Walt Disney (DIS): We think ESPN should be valued at $30B today - KeyBanc

KeyBanc analyst Brandon Nispel reiterated a Sector Weight rating on Walt Disney (NYSE: DIS).

"We remain Sector Weight on DIS and see a neutral risk/reward. Two notable events are upcoming: 1) DIS re-segmenting and breaking out ESPN from Disney Entertainment; and 2) DIS's Investor Summit focused on DPEP (September 18-20 at WDW). We view neither event as a positive catalyst for shares. For ESPN, we take an initial stab at separating it from DMED: from our view: 1) ESPN's fundamental outlook is negative and could materially worsen should CHTR's distribution agreement not be renewed; 2) the opportunity for ESPN in streaming means price increases are coming, which will challenge scale; and 3) we think ESPN should be valued at $30B today (~9x our FY24 EBITDA) though view it as a melting iceberg. We view the value of ESPN as likely below consensus, which is just one of the five reasons we are cautious on DIS."

For an analyst ratings summary and ratings history on Walt Disney click here. For more ratings news on Walt Disney click here.

Shares of Walt Disney closed at $81.64 yesterday.

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