Amanda Tan, an analyst from DBS, maintained the Buy rating on Walt Disney (DIS – Research Report). The associated price target remains the same with $134.00.
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Amanda Tan has given her Buy rating due to a combination of factors, primarily focusing on Disney’s strategic growth initiatives and robust financial outlook. Disney’s direct-to-consumer (DTC) streaming business has exceeded expectations, with earnings per share surpassing estimates by 3.5%, and is projected to reach profitability by the fourth quarter of 2024. The company’s intellectual property portfolio remains a strong asset, creating a synergistic cycle that boosts its diverse business segments, including theme parks and resorts, which in turn provide a steady revenue stream.
Additionally, the experiences segment, which notably comprises parks and consumer products, has shown impressive growth, doubling its return on invested capital over the past five years and expected to maintain a 6% compound annual growth rate through 2027. This segment also contributes significantly to Disney’s free cash flow, anticipated to grow at a 20% compound annual growth rate between 2023 and 2027. These positive financial indicators underpin Amanda Tan’s confidence in Disney’s ability to sustain growth, justifying the Buy rating with a target price of $134.
In another report released today, Deutsche Bank also reiterated a Buy rating on the stock with a $135.00 price target.