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Investing.com - Rosenblatt raised its price target on Walt Disney (NYSE:DIS) to $141.00 from $140.00 on Monday, while maintaining a Buy rating on the entertainment giant’s shares. The $202 billion entertainment powerhouse currently trades at a P/E ratio of 18x, and according to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value model.
The price target increase follows Disney’s fiscal third-quarter earnings report released last week, with Rosenblatt making modest estimate updates to its model for the company.
The investment firm’s new $141 price target assumes a price-to-earnings multiple of 22x against fiscal 2026 estimates one year from now.
Rosenblatt highlighted Disney’s theme parks as key growth drivers, noting they have remained resilient despite competition from Comcast (NASDAQ:CMCSA)’s Epic Universe attraction and are receiving a "meaningful lift" from new cruise ships.
The firm also pointed to ESPN streaming as a potential positive contributor with costs largely established, adding that the new NFL deal is expected to be $0.05 accretive before purchase accounting after the merger closes in over a year.
In other recent news, Walt Disney reported its third-quarter earnings for 2025, revealing a strong financial performance that surpassed analysts’ expectations on earnings per share (EPS) but fell slightly short on revenue forecasts. The company’s EPS reached $1.61, exceeding the anticipated $1.45, while revenue was reported at $23.65 billion, just below the $23.7 billion forecast. UBS reiterated its Buy rating with a $138 price target, citing Disney’s solid fiscal third-quarter results, which included a 2% year-over-year revenue growth and an 8% increase in operating income. BofA Securities also maintained its Buy rating with a $140 price target, emphasizing Disney’s acquisition of NFL Network and the NFL’s 10% stake in ESPN as pivotal for its new direct-to-consumer service. Loop Capital reiterated its Buy rating and $130 price target, highlighting the company’s growth potential, particularly in its direct-to-consumer and Experiences segments. Bernstein raised its price target to $129, maintaining an Outperform rating, and noted Disney’s focus on profitable direct-to-consumer growth as a positive indicator for future performance. These developments underscore Disney’s strategic moves and financial achievements in recent times.
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