By Dhirendra Tripathi
The new target, which is $13 lower from the previous one, is still 16% higher than the stock’s current price.
Analyst Steven Cahall, while maintaining his confidence in the company, said the price target needed to be lowered as the brokerage resets its subscriber numbers for the streaming giant in view of recent comments made by Disney CEO Bob Chapek.
While retaining his “bullish and confident outlook” about long-term subscriber growth, Chapek told an investor conference recently that he expected an increase only in the “low single-digit millions of subscribers” for its at-home streaming service Disney+ in the ongoing quarter.
According to reports, the Wells Fargo analyst cut his 2024 Disney+ subscriber estimate to 236 million from 256 million against company’s guidance of 230 million to 260 million subscribers. He estimates total Disney streaming users to touch 335 million compared to a guidance of 300 million to 350 million.
The company had closed the third quarter ended July 3 with a paid subscriber base of 173.7 million across its Disney+, EPSN+ and Hulu platforms.
“Now at the lower end of the Disney+ long-term guidance, we expect investors to wonder if it’s a risky bar,” Cahall concluded.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.