By Sam Boughedda
In a note on Apple (NASDAQ:AAPL) vs. Walt Disney (NYSE:DIS), Needham & Company analysts stated that Apple and Disney are complementary networks.
The analysts, who have a Buy rating and $170 price target on Apple, said their firm believes that defensively, content beats technology as a multi-decade moat.
"Offensively, as an upside value driver, strong distribution and world-class content are complementary networks. That is, they are worth more together than separately, we believe," they wrote.
The analysts explained that they are complementary networks because Apple is best at distributing content globally to high-end mobile devices, while Disney creates "AAA content franchises, which it distributes globally across all screens, as well as in the physical world."
"From a valuation point of view, many of AAPL's most important assets are also resident at DIS. This implies that these key assets and value-drivers become stronger, and are not diluted, if the 2 companies are put together," they added.