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On Wednesday, JPMorgan reiterated its Overweight rating on Walt Disney (NYSE:DIS) stock, maintaining a $130.00 price target. The firm’s analysis highlighted the significant role of Disney’s Parks & Experiences division in the company’s revenue and operating income. According to the firm, this segment is expected to remain the main contributor to Disney’s financials, even as the Direct-to-Consumer (DTC) sector expands.
The firm’s analysts underscored the uniqueness of Disney’s parks in the media landscape, noting their ability to create tangible interactions with intellectual properties (IP) and franchises through rides, characters, and merchandise. JPMorgan expressed a bullish stance on the long-term earnings potential of the Parks & Experiences business, citing ongoing investments in new capacities, cruises, and refined pricing strategies.
JPMorgan’s report delved into Disney’s operational strategies, suggesting that the company has considerable control over its success, despite the macroeconomic factors typically influencing consumer discretionary businesses. The analysis included detailed plans for expansion both domestically and internationally, with a special focus on the cruise line business projected through fiscal year 2030 (F30).
Additionally, the firm provided an outlook for fiscal years 2025 and 2026, considering the upcoming introduction of Epic Universe to the Orlando market and its potential impact on Disney’s existing parks. The report concluded with a review of Disney’s pricing strategies for admission and line-cutting options, which are key components of the company’s revenue management.
In other recent news, Walt Disney Company reported its first-quarter earnings for 2025, exceeding expectations with an earnings per share (EPS) of $1.76, compared to the forecast of $1.45. The company’s revenue aligned with predictions at $24.7 billion, demonstrating robust performance driven by growth in its Direct-to-Consumer segment and successful box office releases. Additionally, Morgan Stanley (NYSE:MS) raised its price target for Disney shares from $125.00 to $130.00, maintaining an Overweight rating, citing a positive earnings revision cycle and potential for multiple expansion. Meanwhile, Disney plans to cut approximately 6% of its workforce at ABC News Group and Disney Entertainment Networks, affecting less than 200 staff members. The company is also consolidating some ABC shows and integrating digital editorial and social teams with news gathering. These changes reflect the media giant’s response to shifting cable TV audiences towards streaming platforms. In other developments, UBS upgraded China Tower Corp’s stock from Neutral to Buy, with a new price target of HK$1.50, based on optimistic dividend prospects and anticipated net profit growth.
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