Risks to our target price being achieved include the following:
1. If pay TV subs decline faster than anticipated, there may be downside to our estimates and target price.
2. Challenges to the broader economic environment could pressure advertising revenue at Disney's Entertainment and Sports segments, which may result in downside to our current forecast.
3. A potential slowdown in DTC subscriber growth or more limited DTC profitability could dampen investor enthusiasm about the prospects for the firm's DTC business.
4. If the firm's upcoming film slate underperforms expectations, there may be downside to our estimates and target price.
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