Cowen Sees Disney+ Launch Surprising Wall Street

A number of analysts have commented positively on Disney's new streaming service

by Josh Selway

Published on Apr 9, 2019 at 9:59 AM

More analysts are weighing in bullishly on Walt Disney Co (NYSE:DIS) because of its push into streaming. Cowen this morning upgraded DIS stock to "outperform" from "market perform" and boosted its price target to $131 from $102, expecting a stronger-than-expected launch for the company's direct-to-consumer Disney+ streaming service. For more near-term catalysts, the analyst note called out the upcoming investor day this Thursday, April 11, while adding that the company's studio business could see surprising profits and provide tailwinds, as well.

Elsewhere, Citigroup came in and lifted its own price target on the blue-chip stock to $132 from $126. DIS shares are trading up 0.5% today at $115.49, seeking their highest close of 2019. More broadly, the equity has struggled to break out of the $115-$120 range since touching an all-time high of $122.08 back in September.

Options traders continue to bet bullishly, however, according to the 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 3.33. This reading ranks in the 90th annual percentile, showing such demand for long calls over puts is unusual.

Facebook, Inc. (NASDAQ:FB) also just received another analyst bull note, with Morgan Stanley lifting its price target to $195 from $190. The brokerage firm believes the monetization of Instagram stories could add about $4 billion to the company's North American ad revenue by 2021. This comes after Deutsche Bank last week commented on the potential for shopping on Instagram. In response, FB shares are trading 1% higher at $176.70, which would mark their best close in 2019.


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