marketwatch.com/story/disneys-longer-slower-profit-climb-could-stop-the-stock-from-rising-says-analyst-11642174270
Walt Disney Co. faces a “longer, slower profit climb” that could limit upside for its shares. Disney’s stock is off 2.8% in Friday morning trading. “[W]e believe a slower return of international visitation and inflationary pressures beyond the control of management are not fully reflected in consensus expectations,” Morris wrote in his note to clients.

Morris cut his forecast for operating income before depreciation and amortization (Oibda) within the parks business. He also is taking a more cautious approach when evaluating Disney’s programming business. The company is navigating the costly move to streaming amid a heated competitive landscape.

He now expects that the streaming service could log 10 million subscriber additions, while he said that consensus expectations are for 6.8 million. Overall, though, he deems Disney’s shares “close to fairly valued” while trading at a 30x price-to-earnings multiple and 17 times his 2023 expectations.
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