New ESPN offering to be ‘key contributor’ to Disney sports growth, says BofA

BofA reiterated a Buy rating and $140 price target on Disney (DIS) after the company reported a “solid” Q3 with revenue below but operating income and EPS above the firm’s expectations. The analyst also noted the other announcements from Disney, namely: the acquisition of NFL Network; the launch date of their new direct-to-consumer ESPN offering; and the acquisition of WWE rights. This new ESPN DTC will be a “robust” offering, and should be a key contributor to sports growth in FY26 and beyond, the analyst tells investors in a research note. The firm added that while the company raised its FY25 outlook, it expects this was lower than investor expectations and is leading to the negative share performance.