JPMorgan Sees Disney’s (DIS) Entertainment Engine Gearing Up for Next Growth Chapter

The Walt Disney Company (NYSE:DIS) is one of the best stocks to buy according to Citadel LLC. On October 15, JPMorgan analyst David Karnovsky reiterated his Buy rating on the stock with an unchanged price target of $138.00. According to the analyst, the recent data on Disney’s domestic parks and experiences segment showed encouraging trends, which were a primary reason for his positive stance.

JPMorgan Sees Disney’s (DIS) Entertainment Engine Gearing Up for Next Growth Chapter

Photo by Kéoma Oran on Unsplash

While the analyst acknowledged recent headwinds, including the recent suspension of its program ‘Jimmy Kimmel Live!’, he believes the long-term outlook is intact. He expects profitability in the direct-to-consumer (streaming) business to improve on the back of strong programming momentum and cost savings. The company’s growth is further underpinned by catalysts such as the rollout of ESPN streaming, the integration of Disney+ and Hulu, a renewed focus on new cruise ships, and a robust content pipeline, as per the analyst.

Karnovsky also believes that The Walt Disney Company’s (NYSE:DIS) valuation is reasonable and could re-rate if management provides more visibility into its multi-year outlook.

The Walt Disney Company (NYSE:DIS) is a U.S.-based multinational mass media and entertainment conglomerate. Its business spans across media networks, parks and resorts, studio entertainment, consumer products, and interactive media.

While we acknowledge the risk and potential of DIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DIS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: Goldman Sachs Defense Stocks: Top 10 Stocks to Buy and  13 Best Tech Stocks Under $10 to Invest In.

Disclosure: None. This article is originally published at Insider Monkey.