Disney (DIS) stock is trading at a considerable discount to its sum-of-the-parts valuation, writes Caris & Company analyst David Miller in upgrading the stock to Buy from Neutral. In fact, the market appears to be valuing only ESPN, the Parks, the Cruise Line, and cash, meaning investors get the rest of the businesses for free, Miller argues.
“As such, investors who go long DIS today are essentially getting all of DIS� Cable networks ex-ESPN, the ABC Network, the ABC O&O stations, Consumer Products, Online, and the Studio, plus all unconsolidated assets, for free,” Miller writes.
Miller has a $45 price target on the stock. It was trading at $32.61, down 1.2%, on Tuesday afternoon.
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