Walt Disney started with Outperform at Bernstein: 4 big analyst picks By

— Here is Tie up How much does it cost to build a foreign exchange platformyour Pro Recap of the biggest analyst picks you may have missed since yesterday: an Outperform initiation at Walt , and upgrades at Vale, , and TE Connectivity.

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Walt Disney started with Outperform at Bernstein

Bernstein initiated coverage on Walt Disney (NYSE:) with an Outperform rating and a price target of $103.00.

The firm is optimistic about Disney's potential to transition to direct-to-consumer (DTC) streaming successfully once combined with Hulu.

We forecast DTC growth to outpace Linear decline, supporting overall growth of Media, with DTC revenue surpassing Linear revenue in 2024, and Disney becoming the undisputed #2 SVOD.

The firm foresees EBITDA margin expansion from around 18% to the low 20s for the foreseeable future. “Hulu is a near-term controversy due to the uncertainty about how much Disney will end up paying for CMCSA's 1/3 stake in Hulu, but we believe the range of outcomes is narrow,” commented Bernstein. According to the firm, Disney stands to benefit significantly from full control of the asset, and if the deal is resolved positively, it could lift a modest overhang on the stock.

Vale earns an upgrade at UBS

Vale SA (NYSE:) shares rose more than 1% pre-market today after UBS upgraded the company to Neutral from Sell, as reported in real-time on InvestingPro.

According to the bank, the commodities and mining sector's outlook is balanced due to China's efforts to support its economy and the offsetting effects of property market weakness with strength in infrastructure and other sectors.

According to UBS, the key driver for Vale is the iron ore price, which is expected to remain within the range of $100-130 per ton over the next six months. This allows Vale to offer an attractive dividend of approximately $4.6 billion (approximately 8% yield) over the next year and buy back stock.

Two more upgrades

Shoals Technologies Group (NASDAQ:) shares gained more than 4% pre-market today after Piper Sandler upgraded the company to Overweight from Neutral with a price target of $28.00.

(NYSE:) shares rose more than 1% pre-market today after TD Cowen upgraded the company to Outperform from Market Perform with a price target of $140.00.

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