(CercleFinance.com) – The title Disney registered a small increase on Tuesday on Wall Street, supported by optimistic comments from analysts at Wells Fargo in the run-up to the quarterly publication of the entertainment giant.
In a note released in the morning, the Californian bank said it was expecting “fireworks” when the group’s first quarter results were released, scheduled for Wednesday, February 8.
Wells Fargo – which maintains its ‘overweight’ recommendation with a price target of $125 – does believe that Disney’s management team will be keen to impress the market as it currently finds itself under fire from critics of the Trian investment fund.
‘The best way to defend yourself against an activist investor is to raise the stock market’, recalls the establishment in its note.
According to Wells Fargo, Disney could in particular give up its objective of subscribers by 2024 in order to focus on the creation of content and the profitability of its activities in video streaming.
In this sense, the group could, according to him, unveil an aggressive cost reduction program, perhaps of the order of two billion dollars, which would mainly target non-programming costs.
Shortly before 11:00 a.m. (New York time), Disney shares gained 0.3%, while the Dow Jones fell around 0.1%.
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