On Tuesday, KeyBanc Capital Markets maintained its Sector Weight rating on shares of Walt Disney Company (NYSE: NYSE:DIS), citing geolocation data and forthcoming market competition. The firm's analysis of domestic geolocation data suggested a modestly positive outlook for Disney's theme parks, despite a slight year-over-year decline of 1% in November.
This was an improvement from October, even after accounting for hurricane disruptions, hinting at a potential increase in local visitation pushed from the hurricane season into November.
The report indicated a return to normal seasonality as the year 2024 comes to a close. However, looking ahead into 2025, KeyBanc anticipates that Disney could face increased competitive pressures with the launch of Universal's EPIC Universe in May.
The new attraction is expected to shift market share towards Universal, potentially impacting Disney negatively. Universal's parent company Comcast (NASDAQ: CMCSA), a prominent player in the Media industry with $37.29B in EBITDA, has demonstrated strong financial health according to InvestingPro analysis.
KeyBanc's projections for Disney's Domestic Experiences and Comcast's Content and Experiences Theme Parks are below the consensus, with the data suggesting a more favorable situation for Universal compared to Disney. According to InvestingPro's comprehensive analysis of 30+ financial metrics and exclusive Fair Value model, Comcast appears undervalued despite a recent 8.89% weekly decline.
The analyst's fair value estimate for Disney stock stands at $107, which is based on 12.4 times the firm's adjusted EBITDA forecast for 2025. Currently, Disney's shares are trading at approximately 12.7 times KeyBanc's FY25 adjusted EBITDA estimates, compared to the peer average of around 8.5 times.
In other recent news, Comcast Corporation (NASDAQ:CMCSA) has been at the center of several significant developments. The media giant reported a 6.5% increase in total revenue to $32.1 billion in Q3, largely due to the Paris Olympics. However, the company also projected a loss of over 100,000 subscribers for the quarter, a figure higher than the previously estimated 60,000. Analysts from TD (TSX:TD) Cowen, Benchmark, Pivotal Research, and Seaport Global Securities have adjusted their outlooks on Comcast following these results.
Comcast also revealed plans to spin off several NBCUniversal cable television networks into a new independent entity named SpinCo. This strategic move is designed to realign NBCUniversal and drive growth in Comcast's core businesses. Furthermore, Comcast has announced a $55 million investment to expand high-speed internet access to rural areas in Indiana, in collaboration with the Indiana Broadband Office and the Indiana Office of Community & Rural Affairs.
These are recent developments that investors should be aware of as they reflect Comcast's ongoing efforts to enhance its operations and financial performance. The full impact of these developments on the company's financials will be observed in future earnings reports and market evaluations.
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