Walt Disney (DIS) PT Raised to $128 at Evercore ISI

Evercore ISI analyst Vijay Jayant raised the price target on Walt Disney (NYSE: DIS) to $128.00 (from $105.00) while maintaining a Outperform rating.

The analyst comments "We remain bullish into Disney’s 4Q-FY24 print where we expect another quarter of improving DTC profitability and strength from the Studio partially offset by well-understood softness at the Theme Parks and minor drags from the DIRECTV carriage dispute. Looking to FY25, we see continued momentum at DTC, a strong (though 1H-weighted) theatrical slate driving healthy growth at the CSLO segment, and muted Theme Parks results that should improve throughout the year. At DTC, we expect topline strength to support a meaningful ramp in profitability in FY25. For context, annualizing consensus DTC estimates for 4Q-FY24 implies that Disney will exit the year with run-rate revenue/OI of $25.7bn/$755mm compared to the Street expecting $27.7bn/$1.01bn for FY25, respectively. While there’s limited visibility on the cost side given continued investments in content/technology and some uncertainty around the financial impacts of the flagship ESPN DTC product launch, a ~$250mm increase in OI against a $2.00bn increase in revenue should be doable, if not conservative."

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