(This is CNBC Pro’s live coverage of Thursday analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Disney’s earnings release Wednesday drew mostly praise from analysts, who cited the company’s broad array of products and hopes that some new releases will raise the company’s outlook further. However, one analyst soured on American Express, saying that the company’s outperformance this year will need some help if it is going to continue. 6:03 a.m. ET Here’s what analysts are saying after Disney’s first quarter results Wall Street is lauding Disney’s first-quarter earnings beat alongside the company’s new strategic initiatives. Disney reported a beat on the top and bottom lines on Wednesday after the closing bell. Highlights from the report included forecast profitability for the company’s streaming segment this year, as well as news that Disney would invest $1.5 billion in Fortnite maker Epic Games to create new games and a collective entertainment universe. “Disney continues to benefit from a global diversified portfolio,” Morgan Stanley analyst Benjamin Swinburne wrote on Thursday. The analyst reiterated an overweight rating on Disney stock alongside a $110 per share price target, or about 11% upside moving forward. “Disney laid out a clear plan to drive longer-term streaming revenue growth, both with subscribers and ARPU. It must execute, but the strategy is in place,” he added. “Our key takeaway from the report and call is the same as last quarter, which is that DIS is making progress against management’s lengthy to-do list,” Goldman Sachs’ Brett Feldman said. Feldman his buy rating on Disney and a $120 per share price target, implying more than 21% ahead. Feldman specifically highlighted the company’s cost saving efforts which could translate to roughly $5 billion in free cash flow in 2024. Bank of America also reiterated a buy rating on Disney stock, and stood by its $110 per share price target. While analyst Jessica Reif Ehrlich said she is hoping for stronger box office numbers from Disney’s slate of forthcoming releases, she noted that Disney has “a collection of best-in-class premiere assets” which will aid growth moving forward. — Brian Evans 5:46 a.m. ET Morgan Stanley downgrades American Express, says positive catalysts have already played out Morgan Stanley says American Express may have trouble reaccelerating discount revenues growth, which is the company’s largest business segment. The firm downgraded the stock in the credit card company to equal weight from overweight on Thursday, but increased its price target to $222 per share from $212. Morgan Stanley’s forecast implies more than 6% upside from Wednesday’s $209.08 close. American Express stock has gained nearly 12% from the start of the year. Shares have outperformed peers thanks to a strong revenue and earnings per share outlook in the company’s fourth-quarter earnings report. But analyst Jeffrey Adelson says the positive outlook for 2024 is now already “baked” into American Express’ stock price, and the company now needs to focus on execution of other key efforts. “The largest component of AXP’s revenues, discount revenues, have slowed throughout 2023, and exited the year with a growth rate of just 5%,” Adelson said. “We now view the good news delivered on earnings, including the dividend raise, as now largely in the price.”
