Goldman Sachs: 'We continue to view DIS stock as attractive'

Goldman Sachs analyst Michael Ng reiterated a Buy rating and $152.00 price target on Walt Disney (NYSE: DIS).

The analyst comments "We continue to view DIS stock as attractive (16X F26 P/E for ~10% EPS 3Y CAGR) and see the pullback as a buying opportunity, particularly given DIS’ reiteration of F26/27 EPS growth of double-digits. That said, we acknowledge that results and segment-level KPIs muddled elements of the upside case in DTC, Parks, and Sports. ● DTC EBIT for F4Q25A and the F1Q26E outlook ($375M DTC SVOD EBIT) missed (SG&A elevated in F4Q25A, Taylor Swift docuseries and concert film hitting F1Q26E), when combined with DIS’ F26 cash content outlook of $24B (v. $22.7B in F25) and DIS’ F26 SVOD EBIT margin outlook of 10% implies less operating leverage and the need to invest more to drive growth than we expected. ● Despite WDW bookings pacing up 6% yoy in F4Q25A and accelerating growth in alt-data (e.g., Placer.ai), we estimate domestic attendance declined 2% yoy in F4Q25A. In our view, the disconnect relative to bookings may be as a result of in-state patrons (e.g., commuter) spending more days at Epic Universe. DIS’ parks investments and waning competition headwinds should help drive a return to attendance growth, DIS F2025 domestic attendance decline of 1% is the worst since F16 (excluding F20/21). ● Although DIS reiterated its outlook for Sports F26 EBIT growth of LSD, we were surprised by the lack of upside given greater clarity into the performance of ESPN Unlimited, which we believe has several million paid subscribers (2M subscribers at a $20 ARPU implies ~$500M revenue), which we expected to more than offset incremental opex from the NBA step-up and WWE PLE rights (from Peacock), net of the non-renewal of UFC (to Paramount)."

For an analyst ratings summary and ratings history on Walt Disney click here. For more ratings news on Walt Disney click here.

Shares of Walt Disney closed at $107.61 yesterday.

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