Walt Disney Company Analyst Insights on Streaming and Theme Parks

The Walt Disney Company (NYSE: DIS) is predicted to experience positive growth, largely driven by its theme parks and streaming services, according to analysis from Barton Crockett at Rosenblatt.

Analyst Perspective: Crockett keeps a Buy rating on Disney and has increased the price target from $122 to $135.

Key Takeaways: In a fresh investor note, Crockett states that Disney's potential for growth is "do-able" and believes the stock presents a worthy investment.

The new target of $135 is based on the expectation that Disney shares could achieve a forward price-to-earnings ratio of 22x, moving away from the nearly 10% discount to the market average that Disney has faced in recent times.

Crockett notes, "A northward re-rating for Disney can be supported by rising confidence in portfolio durability and growth trajectory, along with reduced fears about the impacts of linear TV declines and competition within the streaming space."

Although Disney is ambitious about forecasting high single-digit earnings per share growth for 2025, followed by double-digit gains in 2026 and 2027, Crockett suggests these targets are achievable, especially after receiving insights from new CFO Hugh Johnson last week.

Disney’s commitment to enhancing its theme park operations and cruise lines is expected to keep attracting guests in the years to come.

Additionally, the company's direct-to-consumer (DTC) segment—which encompasses platforms like Hulu, Disney+, and ESPN—could serve as an essential driver of growth. Crockett indicates that cross-promotion strategies have effectively reduced subscriber churn rates. Furthermore, Disney+ is experiencing subscriber growth, partly due to several anticipated blockbuster films. Upcoming movie releases such as "Deadpool & Wolverine," "Inside Out 2," and "Moana 2" are expected to further increase subscriber interest.

Crockett emphasizes that DTC streaming will be a significant contributor to segment profit growth in fiscal year 2026.

Current Stock Performance: As of Monday, Disney stock has dipped 0.58%, trading at $112.41. This falls within a 52-week range of $83.91 to $123.74, while the stock has gained 24% year-to-date in 2024.

Future Prospects for Disney

With various projects in the pipeline and a solid base in its theme parks and streaming services, Disney is poised for a potentially bright future. Analyses like that of Crockett illustrate a positive outlook, suggesting that investors could see favorable returns if Disney successfully navigates the challenges of the modern media landscape.

Conclusion

In summary, the analysis by Rosenblatt's Barton Crockett highlights the importance of Disney’s theme parks and streaming segments in driving the company’s future growth. With a maintained Buy rating and an updated price target, the outlook for Walt Disney Company appears optimistic.

Disney, Streaming, Analysis