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Read Why MoffettNathanson Slashed Walt Disney Price Target By 6%

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  • MoffettNathanson analyst Michael Nathanson lowered the price target on Walt Disney Co (NYSE: DIS) to $165 from $175 and reiterated a Neutral rating on the shares. The price target implies an upside of 8%.

  • Nathanson's FY22 free cash flow estimate of $1.9 billion after the Shanghai adjustment is "a significant decrease" of over 60% from his prior estimate of $5.1 billion following his annual Disney 10-K review and taking into account management commentary.

  • He has also lowered his out-year free cash flow projections to account for higher working capital drags from elevated programming spending.

  • Disney CEO Bob Chapek has an opportunity to set the company on a new path. Still, the COVID-19 pandemic has dealt the new CEO a "very difficult hand," and Disney's significant strategic alternatives are "rather limited at this point," Nathanson added.

  • Price Action: DIS shares traded lower by 0.24% at $151.90 in the premarket session on the last check Wednesday.

Latest Ratings for DIS

Jan 2022

Guggenheim

Downgrades

Buy

Neutral

Jan 2022

Tigress Financial

Maintains

Buy

Dec 2021

Morgan Stanley

Maintains

Overweight

View More Analyst Ratings for DIS
View the Latest Analyst Ratings

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