Could Disney stock surge? Analysts raise price targets after strong earnings

Walt Disney is attracting growing attention from analysts, as several major firms have recently raised their price targets for the entertainment giant, signalling increased confidence in the company’s performance and future prospects, as per a report.

Wall Street Is Getting Bullish on Disney

Recently, the global investment and advisory financial services firm Guggenheim upped its price target for Disney's shares to $140 from $120, as per a report by Benzinga. Guggenheim's analysts have currently rated the entertainment giant's stock as "buy", and the investment firm's target price indicates a potential increase of 15% from the company's previous close, according to a report by Market Beat.

Barclays was among the first to adjust its outlook, raising its price target from $115 to $120 and assigning an “overweight” rating in a May 8 report, as per Market Beat. That same day, Morgan Stanley echoed the sentiment, also lifting its target from $110 to $120 with an “overweight” rating, according to the report.

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UBS Group followed suit, boosting its target price from $105 to $120 and issuing a “buy” rating, while Loop Capital went a step further, upping its estimate from $125 to $130 in a June 10 report and maintaining a “buy” rating, according to the Market Beat report.

Rosenblatt Securities also weighed in, increasing its target from $135 to $140 on June 3 and giving Disney a “buy” rating, which matches Guggenheim’s latest move to the same $140 target, as per the Market Beat report.

Altogether, the broader analyst consensus paints a fairly optimistic picture, and according to the data compiled by Market Beat, six analysts currently rate Disney a “hold,” while 17 say “buy,” and two have gone as far as to label it a “strong buy” for Disney stock, as per the report. As per Market Beat's analysis, the average price target across all firms now sits at $124.79 and has an average rating of "Moderate Buy", suggesting analysts see more upside ahead for Disney stock, according to the report.

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Disney's Strong Earnings Spark Optimism

The increase in price target comes after Walt Disney posted better-than-expected earnings for the quarter ending May 7, giving investors more confidence in the company, as per the Market Beat report.

Disney posted $1.45 earnings per share for the quarter, above the consensus estimate of $1.21 by $0.24, according to the report. The entertainment giant also reported a revenue of $23.62 billion for the quarter, which beat analysts' expectations of $23.15 billion, as reported by Market Beat. Equities research analysts have predicted that Walt Disney will report 5.47 earnings per share for the current year, according to the Market Beat report.

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FAQs

What is Disney’s highest updated price target?
Guggenheim and Rosenblatt both set it at $140.

What’s the average analyst price target for Disney stock?
It currently sits at $124.79, according to MarketBeat.