Loop Capital Analyst Raises Disney Price Target by 23.9% on Strong Buy Rating

Loop Capital's Alan Gould raised their price target on Disney (NYSE: DIS) by 23.9% from $113 to $140 on 2024/05/06. The analyst maintained their Strong Buy rating on the stock.

Gould's update on Disney came just ahead of the company's Q2 2024 earnings release, which is scheduled for May 7, 2024. The analyst offered a preview of the earnings report, noting that they expect fewer announcements compared to the previous quarter due to CEO Bob Iger's successful handling of an activist investor.

In their analysis, Gould made several predictions for Disney's future performance. Firstly, they predicted that the streaming division's losses would be closer to breakeven than previous projections. This suggests that Disney's streaming services, including Disney+ and Hulu, are expected to improve their financial performance in the coming quarters.

Secondly, Gould anticipated that the company's movie division would experience a turnaround. This prediction indicates that Disney's upcoming movie releases are expected to perform well and potentially contribute to the company's overall growth.

Additionally, the analyst forecasted that consumer confidence would remain strong and that Disney would face softer comparisons in future quarters. This suggests that Disney's core businesses, such as theme parks and consumer products, are likely to continue performing well.

Lastly, Gould predicted the beginning of share repurchases by Disney. Share repurchases are a common method for companies to return value to shareholders and can indicate confidence in the company's future prospects.

Deutsche Bank analyst Bryan Kraft also issued an update on Disney on May 6, 2024. Kraft raised their price target for Disney from $125 to $130, representing a 4% increase. The analyst maintained their Strong Buy rating on the stock.

It is worth noting that all top-rated analysts currently rate Disney as either a Strong Buy or Buy. No analysts see it as a Hold, and no analysts recommend selling the stock. This indicates a high level of confidence in Disney's future prospects among industry experts.

The consensus forecast among analysts is that Disney's upcoming fiscal year will deliver earnings per share (EPS) of $2.58. If this prediction holds true, Disney's next yearly EPS will be up by an impressive 57.2% on a year-over-year basis.

In terms of the stock's performance, Disney's share price has seen significant growth since its last quarterly report on December 30, 2023. The stock has surged by 29% during this period. Year-over-year, Disney's stock is up by 13.1%. However, it is worth noting that Disney has trailed behind the broader market, as the S&P 500 index has gained 25.2% over the same period.

Alan Gould, the analyst who raised Disney's price target, is ranked in the bottom 10% among 4,575 Wall Street analysts by WallStreetZen. Gould has an average return of -3.2% and a win rate of 48.3%. They specialize in the Technology and Communication Services sectors.

The Walt Disney Company is a renowned mass media and entertainment conglomerate. The company is well-known for its film studio, Walt Disney Studios, and also owns and operates the ABC broadcast network, cable television networks, publishing, merchandising, music, and theater divisions. In recent years, Disney has expanded into the direct-to-consumer streaming market with services such as Disney+, Star+, ESPN+, and Hulu. Founded in 1923, Disney is headquartered in Burbank, California.

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