On Monday, Rosenblatt Securities updated its outlook on Walt Disney Co (NYSE:DIS), raising the stock's price target from $122.00 to $135.00 while maintaining a Buy rating. The firm's analyst cited confidence in the company's growth potential.
The analysts pointed to Disney's Chief Financial Officer's discussion at a media conference last week, highlighting the company's plausible growth strategy. The revised price target represents a $13 increase and is based on the expectation that Disney's stock will trade at a price-to-earnings (P/E) ratio of 22.0 times its forecasted fiscal year 2026 post-merger earnings per share (PF EPS). This aligns with current market averages for forward P/E ratios, contrasting with Disney's recent trend of trading at a discount of approximately 10% to the market.
Disney's recent performance, including its success in the movie sector and other business areas, has contributed to the updated estimates.
"A northward re-rating for Disney can be supported by rising confidence in portfolio durability and growth trajectory, and less concern about exposure to secular pressures on linear TV and competition in streaming," the firm said.
The new price target reflects a belief in Disney's ability to navigate the competitive entertainment landscape effectively. The analyst's commentary suggests that Disney's strategic initiatives and recent disclosures have provided a clearer picture of its financial prospects, leading to the revised valuation.
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