Disney Magic Returns? Wall Street Cheers With Price Hikes After Stellar Earnings, Retail Buzz Grows

Shares of Walt Disney Co. ($DIS) climbed over 2% on Friday morning, on track to extend their rally to nine consecutive sessions — a streak not seen since July 2018. 

The entertainment giant impressed Wall Street with its fiscal fourth-quarter earnings, which led to a flurry of price target upgrades.

Disney reported a significant turnaround in its streaming business, swinging to a profit in the latest quarter. 

Total revenue grew 6% year-over-year (YoY) to $22.57 billion, aligning with analyst forecasts, while net income surged 74% to $460 million. 

Adjusted earnings per share (EPS) came in at $1.14, surpassing consensus estimates of $1.11. 

For fiscal 2025, Disney is projecting adjusted EPS growth in the high single-digit percentage range and expects its streaming unit’s operating profit to grow by $875 million, reaching up to $1 billion.

On Friday, DIS received at least 10 price target hikes from Wall Street analysts covering the stock. Some of the notable reactions include:

• Loop Capital: Analyst Alan Gould raised the price target to $125 from $120, maintaining a ‘Buy’ rating. Gould highlighted that Disney’s creative resurgence has lifted its global box office per franchise film by over 50% in the last two years, with knock-on effects expected for consumer products, theme parks, and streaming engagement.

• BofA Securities: The firm raised its target to $140 from $120, among the most bullish, citing an encouraging fiscal 2025 outlook with high single-digit EPS growth and double-digit growth for fiscal years 2026 and 2027.

• Wells Fargo: Analyst Steven Cahall upped his price target to $138 from $116, keeping an ‘Overweight’ rating. Cahall noted that Disney’s clear guidance for double-digit EPS growth in the coming years has alleviated investor concerns, paving the way for a stronger long-term investment thesis.

• Barclays: The firm said its new target of $125 (up from $105) reflects confidence in Disney’s ability to navigate near-term challenges in its parks segment. Barclays noted that excluding costs related to new cruise ships and hurricane impacts, core growth is likely in the 9% range, exceeding longer-term trends.

On Stocktwits, Disney was among the top trending tickers early on Friday morning with a surge in retail chatter, although sentiment dipped to ‘neutral’. 

A poll on the platform revealed that 40% of retail investors expect Disney’s stock to close out 2024 between $100-$120, while 26% foresee a range of $120-$140, the latter representing a potential three-year high.

The stock has rallied nearly 24% year-to-date, roughly keeping pace with broader indices like the S&P 500 and Nasdaq.

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