Entertainment giant Disney (NYSE:DIS) shares are up nearly 2% in Monday afternoon’s trading, thanks in large part to a new report. Word from Fox (NASDAQ:FOX) CEO Lachlan Murdoch suggests that the massive new sports streaming bundle with Disney and Warner Bros. Discovery (NASDAQ:WBD) could be a serious winner indeed.
How serious of a winner? Reports suggest that, just in the first five years, the bundle could land five million subscribers. While it’s unclear just how rapidly those sign-ups will take place—and thus, how much revenue the package would bring in over the next five years—the key takeaway is that revenue generated will be “incremental to its existing pay-TV revenue base,” noted a Variety report.
The bundle is not only designed to appeal to “cord-cutters” (those who left cable) but to “cord-nevers,” a growing cohort of users who never had cable to begin with and aren’t interested in starting now.
But Not, Perhaps, That Easy
Standing between this new bundle and huge success is Fubo (NYSE:FUBO), who was streaming sports long before this was a thing. Fubo is taking the trio on in court, referring to their planned bundle as “borderline racketeering” by a “cartel.” It will likely take some time for that to boil down, and until it does, it leaves a pallor of doubt over whether or not the idea can even go off in the first place.
Meanwhile, Disney is still having trouble with regular people being able to actually afford Disney. A recent report detailed one customer giving up her family’s Disney Parks Annual Passes and saving a hefty $4,095 in the process.
What Is the Target Price for Disney Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on DIS stock based on 17 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 13.61% rally in its share price over the past year, the average DIS price target of $117.90 per share implies 3.45% upside potential.
