Disney price target raised to $120 from $110 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Disney (DIS) to $120 from $110 and keeps an Overweight rating on the shares. Revenue growth of 7% year-over-year came in over 200 basis points ahead of expectations, driven by domestic parks and ESPN, while Disney+ added subscribers and guided to continued growth, the analyst tells investors. Despite the recent rally, there remains a macro overhang to shares, adds the analyst, who argues that guidance pointing to $7-plus of FY27 adjusted EPS would move shares towards its $155 “bull case,” which assumes no recession and Disney continuing to outperform its initial guidance provided last November.