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Disney shares grow 10% as new streaming calls upgrade the pair

Walt Disney Co.’s DIS,
+ 9.57%
plans to become more aggressive with streaming as pandemic hammers other areas of the media conglomerate helped earn the stock an upgrade from Guggenheim analyst Michael Morris after the company’s revenue report on Tuesday afternoon. The stock has risen more than 10% in Wednesday trading. Morris raised its rating on Disney shares to buy from Neutral and raised its price target to $ 140 from $ 123 after Disney said it would launch a new streaming service overseas under the “Star”

; brand and release live-action “Mulan” as soon as possible. to the consumer alternative on 4 September in view of disruptions in the traditional theater model due to COVID-19. “Using Disney assets to accelerate a push into the DTC is likely to be received by investors,” Morris said in his note to customers on Wednesday morning. “As we move toward an investment day (in the coming months), we expect the burden of proof to lie on why Disney will not be a secular winner instead of motivating the company’s ability to deliver investor expectations.” He saw hints in the company’s language that may have shown “a broader willingness to strive for further opportunities” as he streamed along the way, in his view. Credit Suisse analyst Douglas Mitchelson also upgraded the stock to outperform from neutral. Overall, with the new CEO Bob Chapek now indicating an “innovative and bold” additional pivot for streaming, we expect Disney stocks to be even more aggressively positioned as a streaming growth story (where investors have limited investment vehicles) and possibly COVID recovery game, “he wrote. Disney shares have risen 27% so far this year as the S&P 500 SPX,
+ 0.56%
has risen by 16%.

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