Disney stock holds as TD Cowen sets $123 target post-earnings

On Thursday, Walt Disney Company (NYSE:DIS) shares maintained their Hold rating at TD Cowen, with a steady price target of $123.00. According to InvestingPro data, Disney’s stock has shown remarkable momentum with a 12.4% gain over the past week, though it remains slightly undervalued based on InvestingPro’s Fair Value analysis. Analysts at the firm acknowledged Disney’s second fiscal quarter earnings, highlighting that the entertainment giant’s earnings before interest and taxes (EBIT) surpassed both their own projections and the consensus. The company’s financial year guidance was also revised upward, reflecting the strong performance in the first half of the fiscal year.

Disney’s Q2:F25 revenue saw a 7% year-over-year increase, reaching $23.6 billion, which exceeded TD Cowen’s $22.9 billion forecast and the consensus figure of $23.1 billion. This performance aligns with the company’s broader growth trajectory, as InvestingPro data shows a healthy 4% revenue growth over the last twelve months, with the entertainment giant maintaining a solid market capitalization of $194 billion and an overall Financial Health score of "GOOD." This growth was attributed to positive results across all segments, particularly Sports. The segment EBIT also exceeded expectations at $4.44 billion, a 15% increase year-over-year, outperforming the anticipated $3.85 billion and consensus of $3.95 billion. The drivers of this growth were identified as Linear and Direct-to-Consumer (DTC) segments, which were cost-driven, while Content and Parks segments were boosted by revenue growth.

The company’s adjusted earnings per share (EPS) of $1.45 also surpassed the estimates of $1.15 and the consensus of $1.18. In addition, Disney engaged in share repurchases totaling $1 billion in the second fiscal quarter. Following these results, TD Cowen has revised its forecast for Disney’s FY25, raising the revenue estimate from $93.8 billion to $94.9 billion, which marks a 4% increase year-over-year. The adjusted operating income (OI) projection was also increased from $16.9 billion to $17.8 billion, signifying a 14% year-over-year growth. Correspondingly, the adjusted EPS forecast was adjusted from $5.30 to $5.83, slightly above the company’s guidance, indicating a 17% year-over-year increase.

The firm’s reiteration of the Hold rating reflects a balance between the positive aspects of Disney’s improving results and the risks associated with macroeconomic factors and the anticipated CEO transition. Despite the film segment’s underperformance in Q2, it did not significantly impact the overall results, thanks in part to a robust double-digit percentage growth in content licensing. With analyst price targets ranging from $79 to $148, investors seeking deeper insights can access comprehensive valuation metrics and 10 additional ProTips through InvestingPro’s detailed research reports, available as part of their coverage of 1,400+ top US stocks.

In other recent news, Walt Disney Company reported robust financial results for the second quarter of 2025, with adjusted earnings per share (EPS) of $1.45, surpassing the forecasted $1.21. Revenue also exceeded expectations, reaching $23.62 billion against a forecast of $23.13 billion. Following these strong results, Disney raised its full-year EPS guidance from $5.30 to $5.75. Analyst firms have taken note of these developments, with Bernstein maintaining an Outperform rating and a $120 price target, citing Disney’s resilience in the U.S. market and potential for further growth. Jefferies also adjusted its outlook, raising the price target to $100 while keeping a Hold rating, reflecting cautious optimism about Disney’s financial future. Additionally, Disney’s strategic expansion includes a new theme park in Abu Dhabi, highlighting its commitment to global growth. As Disney continues to focus on its experiences segment and streaming services, analysts are closely monitoring its performance amid economic challenges and industry competition.

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