Disney shares got a rating downgrade from analysts at BMO Capital to market perform from outperform.
However, BMO hiked their price target from $165 to $185.
BMO’s price target is $120 per share, up from $100 per share, Disney's DTC business, including Disney+, ESPN+ and Hulu. The firm continues to price Disney's core business at $65.
BMO expects Disney+ to have between 230 million and 260 million subscribers by 2024, an improved outlook from its previous projection of between 60 million and 90 million subs.
The firm expects average revenue of $7.05 per user on Disney's 275.8 million projected subscribers by the end of 2025.