Disney Analyst Highlights Streaming, Theme Parks And 'Portfolio Durability'

Core Viewpoint - Walt Disney Company is expected to experience growth driven by its theme parks and streaming services, with a positive outlook from analyst Barton Crockett [1][2]. Group 1: Analyst Insights - Crockett maintains a Buy rating on Disney and has raised the price target from $122 to$135, indicating confidence in the stock's potential [2]. - The new price target reflects an expectation for Disney shares to trade at a forward price-to-earnings ratio of 22x, moving away from the recent near 10% discount to the market average [2]. - Crockett believes that a re-rating for Disney is supported by increasing confidence in the company's portfolio durability and growth trajectory, alongside reduced concerns about linear TV pressures and streaming competition [3]. Group 2: Financial Projections - Disney is projected to achieve high single-digit earnings per share growth in 2025, with double-digit growth anticipated in 2026 and 2027, although these targets are considered aggressive [3]. - The Direct-to-Consumer (DTC) segment, which includes Hulu, Disney+, and ESPN, is expected to be a significant growth driver, with cross-promotion strategies helping to reduce subscriber churn [4]. Group 3: Market Performance - Disney's stock is currently down 0.58% to $112.41, with a 52-week trading range of$83.91 to $123.74, but has seen a 24% increase year-to-date in 2024 [5].