Morgan Stanley analyst Ben Swinburne turned a little more bullish on Walt Disney Co.'s stock , on the belief that the media and entertainment giant's ESPN cable property will transform into an earnings tailwind from a headwind. Swinburne raised his stock price target to $130, which is 14% above current levels, from $124. He sees an opportunity for ESPN, which had been struggling, to double its distribution revenue in the next few years, as new streaming bundles have stabilized volume trends and given the potential for increase pricing from carriage renewals with traditional distributors. ESPN accounts for about 70% of Disney's cable business, so Swinburne wrote that he believes the opportunity "could turn ESPN from an overhang to an earnings driver, catalyzing earnings revisions and multiple expansion for [Disney] over the next several years." The stock, which tacked on 0.4% in morning trade, has rallied 9.5% year to date, while the Dow Jones Industrial Average has gained 3.6%.
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