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Investing.com — Walt disney (NYSE:) is expected to benefit from cost savings and tailwinds from its streaming business, according to analysts at CMB International.
In a note to clients, which they initiated coverage with a “buy” rating on Monday, analysts said that while Disney has made significant progress in locking in losses from its on-demand video division, He claimed that this has improved overall efficiency. Keep expenses down.
They also called a proposed joint sports streaming platform combining Disney's ESPN network and services from Warner Bros. Discovery (NASDAQ:) and Fox “promising,” calling the lucrative theme park sector a “fast-growing It was described as a “dollar box.”
CMB analysts said that “Disney excels with notable IP brands, a content ecosystem, and a diverse portfolio,” adding that the entertainment giant is undergoing a fundamental “transformation,” resulting in It is expected to grow at an average annual rate of 16% by 2026.
The comments come as Disney faces a proxy battle with activist investors, including Trian Partners co-founder Nelson Peltz. In February, Mr. Peltz criticized Disney's investment plans as akin to throwing “spaghetti at the wall,” saying the company needs to establish an executive-level succession strategy as it aims to become a Netflix-like streaming business. added. Disney responded by refuting many of Peltz's claims.
A big showdown in the board battle looms on April 3, when Disney is scheduled to hold its annual shareholder meeting.
