ESPN
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Investors should buy Disney shares because the media company will benefit from new distribution deals with cable companies and inclusion in over-the-top services in the coming years, according to Morgan Stanley.
It upgraded Disney stock to overweight from equal weight.
"With estimates largely reset and potential for ESPN to accelerate revenue growth against a more aggressively managed cost base, we upgrade DIS," analyst Benjamin Swinburne wrote in a note to clients Monday. "Climbing out of FY17, we think distribution renewals for ESPN, new streaming bundles, and [a] strong film slate will accelerate EPS growth."
