Disney’s shares have seen a significant increase despite underperforming compared to the broader market. The company’s businesses include media networks, parks and resorts, studio entertainment, consumer products, and interactive media. However, its stock has gained only 17.4% over the past year, while the S&P 500 Index has rallied nearly 20.9%.
Disney’s underperformance can be attributed to challenges in its streaming pivot and theme parks, as well as declining legacy media business and rising operational costs. Despite improving streaming profitability, investor concerns persist due to modest Disney+ growth forecasts and increasing competition in the rapidly evolving entertainment landscape.
Recent Q4 results saw DIS shares close up 6% after reporting a beat on Wall Street expectations for adjusted EPS. Analysts expect Disney’s EPS to grow 8.9% in fiscal 2025, but the company’s earnings surprise history remains impressive.
The majority of analysts covering Disney stock (20 out of 29) have given it a “Strong Buy” rating, with a mean price target of $128.48, representing a 12.7% premium to current levels. Bernstein analyst Laurent Yoon has maintained a “Buy” rating on the stock with a price target of $120, implying a potential upside of 5.3%. The Street-high price target of $147 suggests an upside potential of 28.9%.
Source: https://www.nasdaq.com/articles/are-wall-street-analysts-predicting-walt-disney-stock-will-climb-or-sink