Disney: broker confident ahead of earnings call
(CercleFinance.com) - Disney shares rose slightly on Tuesday on Wall Street, benefiting from optimistic comments from Wells Fargo analysts ahead of the entertainment giant's quarterly earnings call.
In its morning comments, the Californian bank said that it was expecting "fireworks" when the group's Q1 results are released on Wednesday 8 February.
Wells Fargo - which maintains its "overweight" rating on the stock, along with a target price of 125 dollars - believes that Disney's management team will be keen to impress the market at a time when it is currently under fire from the Trian investment fund.
Wells Fargo says that Disney could abandon its subscriber target by 2024 in order to focus on the creation of content and the profitability of its activities in video streaming.
To that end, analysts say that the company could unveil an aggressive cost-cutting program, possibly around 2 billion dollars, which would focus on non-programming costs.
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