Analysts Are Cutting Price Targets Of These 5 Stocks

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1. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 111

The Walt Disney Company (NYSE:DIS) is an American multinational entertainment corporation that specializes in the distribution and production of television content, gaming studios, broadcasting media, streaming platforms, and recreational experiences. Amid the Ukraine crisis, The Walt Disney Company (NYSE:DIS) suspended its services across Russia. 

On March 17, Truist analyst Matthew Thornton lowered the price target on The Walt Disney Company (NYSE:DIS) to $160 from $200 and kept a Buy rating on the shares. The analyst noted that consensus subscribers for Q1 2022 are very reasonable, although the last week of March must be observed carefully for any last minute developments. He believes that new market launches over the next several quarters will offer continued recovery in Parks and Box Office. 

Among the hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 111 funds were bullish on The Walt Disney Company (NYSE:DIS), up from 101 funds in the earlier quarter. Philippe Laffont’s Coatue Management is a leading shareholder of the company, with 5.7 million shares worth approximately $898 million. 

Here is what Artisan Value Fund has to say about The Walt Disney Company (NYSE:DIS) in its Q4 2021 investor letter:

“Disney is a global leader in media, has one of the best brands in the world with timeless intellectual property (IP) and a unique business model that allows it to monetize its IP through movies, TV, theme parks, toys and licensing. The company’s scale in IP, stable of powerful brands, including Disney, Pixar, Marvel and Star Wars, and global reach is unmatched, creating an enduring franchise. Disney also has a unique culture which is extremely customer centric and appealing to employees. The company is an engaging workplace too, making Disney an attractive home for top talent. The stock has recently been out of favor as COVID has negatively impacted multiple business lines: theme parks, movies, sporting events and media production. Also, growth in its Disney+ direct-to-consumer business has slowed amid a lull in new content and natural maturation after strong early subscriber growth. Disney doesn’t look cheap today due to COVID’s effect on current earnings; however, we believe a recovery in its theme parks business and an ability to monetize its IP vault sets it up to sustain earnings growth over the long run. Disney has also proven the business is financed well despite the toughest financial conditions in the company’s 100-year history. Even with the ill-timed purchase of 21st Century Fox in 2019 creating elevated leverage, the company remains well capitalized, and interest coverage is still strong.”

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