In a report released on August 6, Mike Ng from Goldman Sachs maintained a Buy rating on Walt Disney, with a price target of $152.00.
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Mike Ng has given his Buy rating due to a combination of factors that highlight Walt Disney’s potential for medium-term growth. The company has shown strength in its Direct-to-Consumer (DTC) segment, with Disney+ and Hulu demonstrating improved operating leverage and monetization, which is expected to enhance subscriber engagement and reduce churn. Additionally, the launch of ESPN’s DTC service, coupled with new partnerships, is anticipated to bolster Sports EBIT growth, setting the stage for long-term expansion in this segment.
Despite mixed results in the US theme parks, with flat attendance but increased per capita spending and hotel occupancy, the overall performance in the Experiences segment remains robust. The company’s strategic investments in theme parks, hotels, and cruise ships are expected to continue driving growth. These factors, combined with an upgraded EPS growth guidance for 2025, contribute to the confidence in Disney’s stock as a quality earnings compounder over the medium term.
In another report released yesterday, Bernstein also maintained a Buy rating on the stock with a $129.00 price target.
Based on the recent corporate insider activity of 68 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.