While mentioning that there were no indications from the companies of a possible deal between Walt Disney Co
TV Demise May Be Inevitable
The more Disney succeeded in accelerating the success of Netflix, the faster would be the demise of the former’s core TV network businesses, Juenger pointed out. He added, however, that the demise of Disney’s
Buying Makes More Sense Than Building
Disney may need to pay as high as ~$70 billion to
“The estimated -31% dilution. But we don't care so much about the dilution, never do. To us what matters is whether the thing you bought is worth, to your shareholders, more or less than what you paid, and how does that compare to the NPV of the next best alternative,” the analyst wrote.
Juenger has a Market-Perform rating and a price target of $102 on Disney.
Netflix was a Wall Street darling in 2015, climbing more than 140 percent. However, its run slowed in 2016 at one point trading in the red year-to-date before spiking higher in late October.
|Nov 2016||Deutsche Bank||Upgrades||Hold||Buy|
|Nov 2016||Pivotal Research||Downgrades||Buy||Hold|
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