In a report released today, Jessica Reif Ehrlich from Bank of America Securities maintained a Buy rating on Walt Disney, with a price target of $140.00.
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Jessica Reif Ehrlich’s rating is based on several key factors that suggest a positive outlook for Walt Disney’s stock. One of the primary reasons is the anticipated profitability growth in Disney’s direct-to-consumer streaming services, bolstered by recent price increases for Disney+ and Hulu. This move is expected to enhance both revenue and profit margins as it takes effect in the upcoming fiscal year. Additionally, despite a delay in the launch of the new Disney Adventure cruise ship, the Experiences segment is projected to experience significant growth, driven by new cruise ships and ongoing strength in parks.
Another factor contributing to the Buy rating is the robust performance in Disney’s Sports segment, particularly with ESPN’s new direct-to-consumer services showing promising initial results. The company’s guidance for fiscal year 2026 indicates potential for double-digit growth in Entertainment operating income, alongside growth in Sports and Experiences. These elements, combined with a favorable market position and strategic initiatives, underpin the confidence in Disney’s ability to achieve a price objective of $140, up from the current price of $114.78.
According to TipRanks, Reif Ehrlich is a 4-star analyst with an average return of 9.4% and a 52.76% success rate. Reif Ehrlich covers the Communication Services sector, focusing on stocks such as Charter Communications, iHeartMedia, and Warner Bros.
In another report released yesterday, Goldman Sachs also reiterated a Buy rating on the stock with a $152.00 price target.