Disney: Returning To Pre-COVID Days Profitability Will Be Challenging
@twinkle5:
$Walt Disney(DIS)$ Summary Disney's legacy Park assets have continued to benefit from the reopening tailwinds. However, investors should focus on its DTC segment as its valuation implies an embedded growth premium. We discuss why we revise DIS stock from Hold to Buy. Investment Thesis The Walt Disney Company (NYSE:DIS) stock has continued to struggle in 2022 despite its pretty robust FQ1'22 earnings card in February. The company's Parks segment has recovered remarkably with the reopening, and its direct-to-consumer (DTC) business alsoimpressed. But, the market may have already priced in Disney's DTC transition. It was pretty clear because DIS stock traded well above its historical metrics. Some analysts/investors even suggested that DIS dese