Walt Disney Co. shares have surged recently amid optimism for the company’s ambitious streaming targets, and that’s reason enough to take a breather on the stock, according to one analyst.
BMO Capital Markets analyst Daniel Salmon cut his rating on Disney’s stock
to market perform from outperform on Monday, just a few days after the media conglomerate held an investor day at which it unveiled the expectation that 230 million to 260 million Disney+ subscribers will be signed up by fiscal 2024. The company also plans to release more than 100 titles to the service every year in a big content push.
“We believe improved vaccination rates could help Disney continue to be a solid ‘reopening’ play, but with considerable multiple expansion recently for both initial vaccine news and Thursday’s direct-to-consumer (DTC) investor day, we step to the sidelines,” Salmon wrote in a note titled “Now The Hard