JPMorgan cuts Disney estimates on spending, 'choppy' Fox integration
JPMorgan analyst Alexia Quadrani views Disney as a "standout among its media peers" due to its scale, strategy and brand, which she believes will allow the company to succeed "in this rapidly changing media consumption environment." However, the investment spending in Disney's direct to consumer platforms and the "choppy" integration of Fox's assets lead to more uncertainty in the financial outlook near term, Quadrani tells investors in a research note. As a result, the analyst lowered her Q4 earnings per share estimate to 95c from $1.05 and fiscal 2020 estimate to $5.50 from $6.30. She also established a December 2020 price target of $150, the same as her previous December 2019 price target. Quadrani keeps an Overweight rating on Disney shares.