Analyst Benjamin Swinburne of Morgan Stanley reiterated a Buy rating on Walt Disney (DIS – Research Report), boosting the price target to $120.00.
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Benjamin Swinburne has given his Buy rating due to a combination of factors that highlight Disney’s strong performance and potential for growth. The company’s strategic growth drivers have exceeded expectations, and there are no visible signs of macroeconomic weakness affecting its future outlook. This is evidenced by the robust revenue and margin performance in the second fiscal quarter, particularly in the domestic parks and resorts, which has led Disney to increase its adjusted EPS guidance for FY25 significantly.
Moreover, the revenue growth of 7% year-over-year surpassed expectations, driven by the success of domestic parks and ESPN, along with subscriber growth in Disney Plus. Despite existing macroeconomic risks, the positive guidance and a rally in shares indicate a strong market response. Swinburne’s analysis suggests that if Disney continues to outperform its guidance without a recession, there is meaningful upside potential, with shares possibly reaching a higher valuation in the future.
In another report released today, Barclays also maintained a Buy rating on the stock with a $120.00 price target.