The Ratings Game
Disney has room to continue raising streaming prices and boost its operating leverage, analyst says
Walt Disney Co. has the opportunity to “meaningfully improve” streaming profits, and that’s one reason Wells Fargo’s Steven Cahall sees its stock as attractive.
He called Disney DIS shares the “best opportunity in media” in a Monday note to clients, writing that the company is “under-earning” in various parts of the business aside from parks. A look at rival Netflix Inc. NFLX offers a glimpse of the potential, Cahall noted, as the company had 15% margins back when it was doing $20 billion in revenue, compared with negative…