Loop Capital maintains Buy rating on Walt Disney stock, citing growth potential

Published 07/08/2025, 14:20
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Investing.com - Loop Capital has reiterated its Buy rating and $130.00 price target on Walt Disney (NYSE:DIS), highlighting the company’s potential to be valued as a growth company again. According to InvestingPro data, Disney’s current market capitalization stands at $207 billion, with the stock showing relatively low price volatility and maintaining a P/E ratio of 18.6x.

The research firm notes that Disney’s direct-to-consumer revenue and profits have been growing faster than its linear business has been declining, while the Experiences business is expected to benefit from investments in theme parks and cruise ships. This growth trajectory is reflected in Disney’s solid 5% revenue growth over the last twelve months, with total revenue reaching $94.5 billion.

Loop Capital also points out that Disney’s studio has valuable intellectual property and is currently under-earning relative to its historical results, even after allocating some profits to direct-to-consumer operations.

The firm acknowledges that Disney’s sports business will likely take longer to develop, despite having brand advantages and improving its app, as it now competes for content rights with better-capitalized companies.

Loop Capital has slightly lowered its fiscal year 2025 earnings per share estimate to $5.92, still ahead of Disney’s updated guidance of $5.85, while adjusting fiscal year 2026 and 2027 EPS estimates to $6.47 and $7.36, respectively. For deeper insights into Disney’s earnings potential and comprehensive financial analysis, check out the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.

In other recent news, Walt Disney Company reported its third-quarter earnings for 2025, delivering a performance that surpassed analysts’ expectations on earnings per share (EPS) but slightly missed revenue forecasts. The company achieved an EPS of $1.61, exceeding the projected $1.45, which represents an 11.03% surprise. However, revenue was slightly under the forecast at $23.65 billion, compared to the expected $23.7 billion. Additionally, Bernstein SocGen Group raised its price target for Disney to $129.00 from $125.00, maintaining an Outperform rating. The firm highlighted Disney’s focus on profitable direct-to-consumer growth through engagement and advertising. The upcoming ESPN Streaming launch, aligned with the football season, is anticipated to boost both subscriber numbers and financial performance. These developments reflect Disney’s strategic initiatives and market positioning.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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