In a report released today, Laurent Yoon from Bernstein maintained a Buy rating on Walt Disney, with a price target of $129.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Laurent Yoon has given his Buy rating due to a combination of factors that highlight Disney’s strong financial outlook and growth potential. The company’s earnings per share (EPS) have shown significant improvement, with a 32% increase in FY24, driven by the recovery of its Parks segment and better margins in its Direct-to-Consumer (DTC) business. Despite Disney’s stock trading at a discount compared to the broader market, its underlying earnings strength remains robust, suggesting a potential for narrowing the valuation gap.
Looking ahead to FY26, consensus expectations for Disney’s EPS indicate continued growth, with projections of a double-digit increase from FY25. This growth is expected to be fueled by rising revenues and expanding DTC margins. The market’s valuation of Disney has been a topic of debate, but the company’s ability to consistently outperform market EPS growth suggests that its stock price could see upward momentum. Yoon’s Buy rating reflects confidence in Disney’s strategic direction and its capacity to address investor concerns, thereby enhancing shareholder value.
In another report released on November 9, Morgan Stanley also reiterated a Buy rating on the stock with a $140.00 price target.