“Larger players have more content, generally better balance sheets and ultimately more options to win and retain consumers to drive profits.”ĭisney investor concern may have also moved past its peak, the analyst suggested. “Given uncertainties in the sector - ad recession, cord cutting, streaming’s TBD profit outlook - we have a strong preference for scale,” he explained. So why is Disney Cahall’s best idea for the new year? Its scale is one part of the story. “Our favorite names to avoid/sell are Fox (ESPN direct-to-consumer risk, Fox News market share), Sinclair (debt and litigation risks) and AMC Networks (lack of M&A participation).” Among his ratings changes for 2024 are an upgrade for Paramount Global to “equal weight” due to potential M&A and a downgrade of Cinemark to “underweight” due to the 2024 film slate. “Our favorite names to own are Disney (earnings per share upside on direct-to-consumer and clarity on ESPN), Spotify (still a margin/free cash flow story) and Netflix and Universal Music Group (overall quality despite high valuations),” he noted. “But, causes have effects: This may be a consolidation year.” His takeaway: “We prefer larger-scale companies, with Disney still our top idea on self-help risk/reward.” He has an “overweight” rating and $115 stock price target on the Mouse House.Ĭahall is also positive on select additional entertainment stocks, while being bearish on others. “We expect challenging trends, including advertising, cord-cutting and profitability to persist into ’24,” he wrote.

20 report titled “The 2024 Oracle,” Cahall didn’t sound too bullish looking ahead. Here is The Hollywood Reporter’s look at some stocks that media and entertainment analysts have started naming as their top picks for 2024. So where do analysts recommend putting money in the new year? Instead of touting big Hollywood stocks, many are pointing to opportunities elsewhere. Producers Launch Indie Financing Fund Heatseeker Media (Exclusive)

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