In a report released yesterday, Laura Martin from Needham maintained a Buy rating on Walt Disney, with a price target of $125.00.
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Laura Martin’s rating is based on several positive developments for Walt Disney in FY3Q25. The company reported a significant increase in adjusted earnings per share, surpassing expectations by 16%, and raised its earnings guidance for FY25 by 18%. Additionally, Disney’s direct-to-consumer segment showed profitability with an operating income of $346 million, and the company successfully repurchased $710 million worth of shares. Furthermore, Disney’s parks segment reported a strong operating income of $2.5 billion, marking a 13% year-over-year growth, and Walt Disney World achieved record revenues despite new competition in the area.
However, some concerns were noted, such as a substantial increase in capital expenditure guidance for FY25 and a lack of clarity on future leadership after Bob Iger. Despite these concerns, the positive financial performance and strategic initiatives, such as the asset swap involving ESPN and the NFL Network and the timely launch of ESPN’s flagship service, contributed to the Buy rating. These factors indicate confidence in Disney’s ability to continue generating strong financial results and executing strategic growth initiatives.
In another report released yesterday, Loop Capital Markets also reiterated a Buy rating on the stock with a $130.00 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.