Disney Shares Earn a Buy Rating in Goldman for Underestimated Transmission Potential

Walt Disney Co. DIS,
+ 0.26%
It could rack up more than 150 million Disney + streaming subscribers by 2025, wrote Goldman Sachs analyst Brett Feldman, who began hedging the media giant’s shares with a buy rating and a $ 137 price target on Monday. The company had 54.5 million subscribers as of early May. The company is “rapidly emerging as a world leader in direct-to-consumer entertainment,” Feldman wrote, arguing that consensus opinion underestimates the profit potential for Disney +. Feldman hopes that the service can become profitable in fiscal year 2021, while he said the consensus view points to fiscal year 2023. He estimates that the market values ​​Disney + at a 50% to 60% discount to the NFLX of Netflix Inc.,
+ 3.24%
business, a gap he hopes will close as Disney + “gets closer[es] Scale similar to Netflix and economy in the next five years. “Feldman also started coverage of ViacomCBS Inc. VIAC,
+ 0.65%
Shares with a buy rating and a target price of $ 34. Disney shares have gained 15% in the past three months as ViacomCBS shares have risen 43%. The S&P 500 is up 16% over that span as the DIA Jones Industrial Average DJIA,
+ 1.54%,
of which Disney is a component, it has earned 12%.