Walt Disney (DIS) PT Raised to $140 at MoffettNathanson

MoffettNathanson analyst Michael Nathanson raised the price target on Walt Disney (NYSE: DIS) to $140.00 (from $130.00) while maintaining a Buy rating.

The analyst comments "The basic layout of a roller coaster has long been the same: the train climbs into the sky, plunges into a high-speed drop, then navigates a series of rises and falls before coasting to a stop. But many modern coasters (especially in Orlando) have introduced a new twist: the second launch. Midway through the ride, the train reaccelerates — often faster than the initial drop — propelling riders into a fresh set of thrills. Disney’s stock has certainly behaved like a roller coaster these past several years. After surging to nearly $200 per share in the post-COVID rally, the stock has spent over three years bouncing between ~$80 and ~$120. The question now is: will the stock continue to be stuck in this range — or is a second launch just around the corner? We believe answers to two key questions will shape the trajectory of DIS share price: (1) can Parks remain a growth driver despite macro and competitive headwinds and (2) what is the upside for DTC post-Hulu arbitration? For Parks, we draw on alternative data sources — including average daily wait times at Walt Disney World — to support our view that attendance remains largely unaffected by Epic Universe. Based on both wait time data and firsthand visit, we believe Epic needs to improve crowd control and expand its capacity to deliver an even better guest experience. On DTC, the Hulu arbitration resolution should finally allow Disney to take the next “big-step” to deliver more engagement, increased synergies, and faster margin expansion."

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