DBS analyst Amanda Tan maintained a Hold rating on Walt Disney (DIS – Research Report) today and set a price target of $125.00.
Amanda Tan’s rating is based on a combination of factors, including Disney’s recent earnings performance and future growth prospects. The company’s first-quarter earnings for 2025 surpassed expectations, largely due to improved profitability in its streaming segment. Despite these positive results, the stock’s recent price increase of 30% over the past six months suggests that much of this good news is already reflected in the current valuation.
Disney’s strategic focus on its intellectual property and the synergistic nature of its business segments contribute to its long-term potential. However, challenges such as increased competition from new theme parks and potential economic downturns that could affect consumer spending on entertainment and experiences present risks. Additionally, while streaming profitability is expected to improve, it remains below that of industry leaders like Netflix. These factors collectively justify a Hold rating, as the stock is likely to trade within a range given the current market conditions.