Disney (NYSE: DIS) boycotts marked the previous year, with its stock suffering and losing almost 60% of the value it gained during the pandemic when it traded near the $200 valuation.
However, the tides are seemingly turning for this entertainment giant, as its theme parks are starting to record visitor numbers near pre-pandemic levels, and its latest movie release, “Inside Out 2,” registered over $1 billion at the box office.
Now, Wall Street analysts are starting to assign price targets for DIS stock that indicate an upside from the current price levels.
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Wall Street analysts are bullish on DIS stock
Wall Street analysts recognize Disney’s slow recovery post-boycott and new projects. They recently assigned several new price targets for DIS stock.
On July 3, Needham’s analyst Laura Martin cited the theme park’s visitor number recovery and increasing profits from its streaming service as the main reasons for the “buy” rating and $145 price target for DIS shares, a Wall Street high.
Guggenheim reaffirmed its “buy” rating on Walt Disney shares with a price target of $140 on the same date while raising its theatrical forecasts due to the strong performance of “Inside Out 2” and adjusted its direct-to-consumer (DTC) estimates to reflect higher costs associated with Hotstar cricket rights.
On June 25, Goldman Sachs began coverage of Walt Disney shares, giving them a “buy” rating and setting a price target of $125. The firm is optimistic about Disney’s potential for solid earnings growth in the coming years.
However, there are some doubters in DIS stock
According to some analysts, the estimated Disney profit for 2024 will need some readjusting. They believe that the entertainment giant is on the right path, but it is still not there.
On July 2, Moffett Nathanson reduced Walt Disney’s stock price target from $130 to $125. The firm has also revised its outlook for Disney’s Experiences segment, now projecting a more conservative demand forecast. Experienced revenue growth is expected to be 6.2% in the fiscal third quarter, down from the previous estimate of 8.2%. For the fiscal fourth quarter, growth is projected to be 6.7%, compared to the earlier forecast of 7.6%.
The forecast for Disney’s adjusted segment operating income (OI), excluding one-time items, aligns with the company’s guidance of mid-to-high single-digit growth for the fiscal third quarter.
However, for the fiscal fourth quarter, Experiences adjusted segment OI growth is anticipated to be 9.0%, slightly below the prior expectation of double-digit growth. This revision is based on an updated analysis of the Parks data.
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