Walt Disney stock price target raised to $129 at Bernstein on DTC growth

Published 07/08/2025, 11:22
© Reuters.

Investing.com - Bernstein SocGen Group raised its price target on Walt Disney (NYSE:DIS) to $129.00 from $125.00 on Thursday, while maintaining an Outperform rating on the entertainment giant’s stock. According to InvestingPro data, Disney is currently trading below its Fair Value, suggesting potential upside opportunity.

The firm cited Disney’s focus on profitable direct-to-consumer (DTC) growth through engagement, advertising, and churn management as signals of discipline and confidence in continued margin expansion. Bernstein noted that the upcoming ESPN Streaming launch, timed for football season, is expected to drive both top and bottom lines by attracting incremental subscribers. With an overall "GOOD" financial health score from InvestingPro and six analysts recently revising earnings estimates upward, Disney’s strategic initiatives appear well-positioned.

Disney’s Experiences segment grew 8% year-over-year, exceeding expectations despite competition from Epic Universe, with the beat driven by healthy volume and increased per capita spending. The firm expects this momentum to continue through the remainder of the quarter. This growth contributes to Disney’s impressive $94 billion in annual revenue, cementing its position as a $207 billion market cap entertainment powerhouse.Unlock deeper insights into Disney’s financial health and growth potential with InvestingPro, featuring exclusive analysis and 8 additional ProTips.

The company raised its full-year earnings per share guidance to $5.85, representing 17% year-over-year growth, though it stopped short of reaffirming its previous double-digit EPS growth guidance for fiscal year 2026.

Bernstein expressed cautious optimism about Disney’s parks recovery trajectory and measured DTC growth, but noted that without clearer indication about upcoming investments in new cruise ships, ESPN streaming, and international DTC growth, the stock may remain range-bound in the near term.

In other recent news, the Walt Disney Company reported its third-quarter earnings for 2025, which presented a mixed financial picture. The company’s earnings per share (EPS) surpassed analysts’ expectations, reaching $1.61 compared to the forecasted $1.45, marking an 11.03% surprise. However, revenue slightly missed projections, coming in at $23.65 billion against the anticipated $23.7 billion. These results underscore Disney’s ability to exceed profit expectations despite revenue challenges. The earnings report has been a focal point for investors assessing the company’s financial health. Additionally, the stock’s pre-market performance showed a decline, though this was not directly tied to the earnings results. Analysts and investors are closely monitoring these developments to gauge future performance. These recent developments highlight the ongoing analysis and scrutiny surrounding Disney’s financial outcomes.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.