Walt Disney Co. (DIS) maintains its "Buy" rating from BofA Global Research, with a price objective of $140, despite several uncertainties heading into FY25. The report highlights Disney's strong asset base, including premium intellectual property and a leading sports brand, as key strengths. The first fiscal quarter is expected to benefit from a robust film slate, featuring hits like "Moana 2" and "Mufasa: The Lion King," although the Experiences segment faces challenges from pre-opening costs for new cruise ships and the impact of two hurricanes.
BofA maintains its F1Q revenue estimate at $25.2 billion, operating income at $4.39 billion, and EPS at $1.40. The report notes, "We see several moving parts in 1Q and into FY25," but emphasizes Disney's long-term positioning as favorable. The company is also expected to make significant investments in its direct-to-consumer segment, which could be a conservative factor in projections.
Disney's current stock price is $108.10, slightly down by 0.07% from the previous close.