Disney's Execution Focus: DTC Margins and Transitioning Sports, Says Wells Fargo Analyst

Wells Fargo's Steven Cahall raised their price target on Disney (NYSE: DIS) by 10.2% from $128 to $141 on 2024/04/23. The analyst maintained their Strong Buy rating on the stock.

According to Cahall, now that the proxy fight is over, investors can expect Disney management to focus on execution, particularly in terms of "DTC margins and transitioning Sports." Cahall also commented on other segments of the business, stating that "Parks are humming, while creative and succession are the big To Dos."

The analyst rating for Disney is overwhelmingly positive, with 100% of top-rated analysts currently rating the stock as a Strong Buy or Buy. There are no analysts who see it as a Hold, and no analysts are recommending or strongly recommending selling the stock.

In terms of earnings per share (EPS) forecast, analysts have a consensus estimate of $2.58 for Disney's upcoming year. If these estimates hold true, Disney's next yearly EPS will experience a significant increase of 57.3% on a year-over-year basis.

Looking at the stock performance, Disney has shown strong growth. Since the last quarterly report on December 30, 2023, the stock price has surged by 25.9%. On a year-over-year basis, Disney's stock is up by 14.1%. However, it is worth noting that during this period, Disney has slightly trailed behind the S&P 500, which has shown a growth of 22.6%.

Steven Cahall, the Wells Fargo analyst behind the recent rating and price target increase, has an impressive track record. WallStreetZen ranks Cahall in the top 11% out of 4,560 Wall Street analysts, with an average return of 6.7% and a 53.1% win rate. Cahall specializes in the Communication Services and Technology sectors.

The Walt Disney Company, founded in 1923, is a renowned mass media and entertainment conglomerate. Known for its film studio, Walt Disney Studios, Disney also owns and operates the ABC broadcast network, cable television networks, publishing, merchandising, music, and theater divisions. Additionally, Disney offers direct-to-consumer streaming services such as Disney+, Star+, ESPN+, and Hulu. With its headquarters in Burbank, CA, Disney continues to shape the entertainment industry.

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