Morgan Stanley analyst Benjamin Swinburne maintained a Buy rating on Walt Disney today and set a price target of $140.00.
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Benjamin Swinburne has given his Buy rating due to a combination of factors that suggest a promising future for Walt Disney Co. The company is expected to achieve strong double-digit adjusted EPS growth, contingent on a stable macroeconomic environment. This growth is attributed to the expansion in Disney’s Experiences and Streaming segments, which are anticipated to surpass pre-pandemic earnings levels by the fiscal year 2027.
Moreover, Swinburne highlights the potential for multiple expansion through consistent earnings growth and accelerated streaming revenue. Disney Plus, nearing its sixth anniversary, is noted for its profitability and scale in the U.S., with further international growth opportunities. Additionally, the launch of ESPN streaming and its potential bundling with Disney Plus and Hulu could enhance profitability and reduce churn in the U.S. streaming market. The company’s experiences segment is also expected to grow, driven by an expanding cruise ship portfolio and new attractions in its global parks.
In another report released on July 29, J.P. Morgan also reiterated a Buy rating on the stock with a $138.00 price target.