– Disney is in the early innings of transitioning away from pure production towards a hybrid production/distribution model with the launch of Disney+.
– Structurally attractive business able to monetize a vast entertainment IP portfolio through diverse channels.
– DTC business is expected to double revenues by 2024 driving material uplift to company-wide profitability vs being a loss-making segment today.
Valuation: Expected to generate $7.4 EPS by 2025. At 20x multiple (high end of historical 14x-20x range), the stock would be at $150/share.
Exp. gain: 50% to $150/share by 2025.
Full DIS write-up (free guest account required):