Walt Disney (DIS – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Jessica Reif Ehrlich from Bank of America Securities maintained a Buy rating on the stock and has a $140.00 price target.
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Jessica Reif Ehrlich’s rating is based on several positive indicators for Walt Disney’s future performance. The Experiences segment, a major contributor to Disney’s operating income, is expected to show sequential improvement, particularly with the introduction of new cruise ships that are anticipated to enhance results in the upcoming years. Additionally, the advertising sector, especially sports, is performing well, and Disney’s direct-to-consumer (DTC) segment is projected to see modest growth, aligning with company expectations.
Moreover, Disney’s increased earnings per share guidance for fiscal year 2025 appears achievable, despite previous uncertainties related to tariffs. While the DTC segment is expected to require investment, the momentum in the parks business is likely to support the company’s fundamental strength. Although there was a slight revision in revenue and earnings estimates due to a box office disappointment, the overall outlook remains positive with anticipated profitability in DTC, a resurgence in the Parks business, and a strong slate of upcoming films. These factors collectively justify the Buy rating and the price objective of $140.
In another report released on June 11, Bernstein also maintained a Buy rating on the stock with a $125.00 price target.
Based on the recent corporate insider activity of 69 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DIS in relation to earlier this year.