Goldman Sachs published a note on Disney Monday morning.
The company is well-positioned to pivot into direct-to-consumer video models, a Goldman Sachs analyst said Monday as he initiated coverage of the entertainment giant with a buy rating and a $137 price target.
Analyst Brett Feldman wrote in a note that he believes the market is underestimating the potential of Disney+, Disney's recently-launched direct to consumer (DTC) streaming service.
"We believe Disney's best-in-class brand, global distribution (breadth), production assets (build), sizable content library (backlist) and strong financial profile (balance sheet) position the company to build scaled DTC video platforms in the highly competitive streaming environment," Feldman said.
Jim Cramer took to his column on Real Money to write about Netflix and how well the streaming giant has done so far through the pandemic.
"Netflix, like Amazon, offers a service that is irreplaceable that you would gladly pay more for. Every time I get together with any friends, after we discuss how to stay safe, we almost always talk about what we are watching on Amazon. Now that you can't go to the movies and there are no sports - at least for now - and it has become even more imperative. Some could say Netflix rivals Amazon as the best company's stock to own in the great pandemic. That means that the momentum is very hard to stop even as it is up a huge amount this year. It trades with COVID case growth as much as it does a slate of movies," he wrote.
But should investors look to buy Disney before Netflix?
Jim Cramer said that at the end of the day, Hamilton and Disney+ just aren't enough to make the stock attractive as Disneyland Hong Kong is forced to close once again.
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