Walt Disney stock gains as BofA reiterates Buy rating on ESPN DTC launch

Investing.com - Walt Disney (NYSE:DIS), currently trading at $114.86 with a market capitalization of $206 billion, maintained its Buy rating from BofA Securities, which reiterated its $140.00 price target on the entertainment giant. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculation.

BofA Securities highlighted several significant announcements from Disney, including the acquisition of NFL Network, with the NFL taking a 10% stake in ESPN to add anchor content for Disney’s new direct-to-consumer service.

The company revealed its new ESPN direct-to-consumer streaming service will launch on August 21st at $29.99 per month, featuring multiview capabilities, commerce options, betting integration, and personalization features.

Disney also announced the acquisition of WWE’s PLE rights, further strengthening its content portfolio as it expands its streaming offerings.

BofA Securities expressed an upside bias to Disney’s fiscal year 2026 outlook, noting the company should benefit from a 53rd week, contributions from two new cruise ships, and underlying growth within its parks business.

In other recent news, Walt Disney Company reported its third-quarter earnings for 2025, exceeding analysts’ expectations with an earnings per share (EPS) of $1.61, compared to the forecasted $1.45. However, revenue slightly missed projections, coming in at $23.65 billion against a $23.7 billion forecast. 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 direct-to-consumer growth and the anticipated ESPN Streaming launch as factors for potential margin expansion. Loop Capital also reiterated its Buy rating with a $130.00 price target, emphasizing Disney’s growth potential. They noted that Disney’s direct-to-consumer revenue and profits have been increasing faster than its linear business is declining. Additionally, investments in theme parks and cruise ships are expected to benefit Disney’s Experiences business. These developments suggest a strategic focus on growth and profitability for Walt Disney.

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