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Disney has been silent about the details of its Disney + streaming service as it approaches its investor day Thursday afternoon.
"I think it's going to be $ 120, which is a key level, which will also allow this long-term rally to continue," said Newton. "For most buyers looking for short-term investments, they do seem to be over-bought, but it's really important to have a long-term perspective and look at the stock since it was traded in 2009. "
Disney's shares must only raise 3% to exceed $ 120. They briefly exceeded this level in December for the first time since the end of 2015.
Erin Gibbs, portfolio manager at S & P Global, is also optimistic for the long-term title, although she expects a slight contraction in earnings this year.
"The big problem is that they have just completed the acquisition of Fox's Twenty-First. Century Entertainment therefore has every interest in integrating the streaming service with proprietary content as well as their own content, "Gibbs told Thursday at" Trading Nation "." Even though they have slightly reduced their margin this year, by 2020, they look really strong, so they have this first rate content that looks really valuable for the future . "
Disney's gross margins for the quarter ended December were down to 39% from 41% in the same quarter two years earlier. Analysts expect sales growth to accelerate over the next three quarters, reaching 27% in the last three months of this year.
Disclosure: S & P Global has a position in DIS.
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