Walt Disney (DIS) PT Raised to $129 at Bernstein SocGen Group

Bernstein SocGen Group analyst Laurent Yoon raised the price target on Walt Disney (NYSE: DIS) to $129.00 (from $125.00) while maintaining a Outperform rating.

The analyst comments "Behind the positive headlines lie nuances that keep investors cautious, but not pessimistic enough to expect another bargain opportunity. As the company wraps up FY25, our focus shifts to FY26. We remain cautiously optimistic about Parks’ recovery trajectory and DTC’s measured growth. Four key takeaways: Focusing on profitable DTC growth through engagement, ads, and churn management signals discipline and confidence in continued margin expansion. However, this approach could lead to anemic subscriber growth and may imply a lower long-term ceiling on margins. While it’s too early to define a ceiling for Disney’s DTC margins, we believe the company must continue investing in subs growth, even if that means a temporary slowdown in margin expansion (but in reality - yes - both). “ESPN Streaming” is set to launch just in time for the football season. We expect it to be a driver of both top and bottom lines, as it’s designed to attract incremental, non-overlapping subs. More importantly, it will serve a crucial role as a part of bundled offering with Disney+ and Hulu, helping to reduce churn to industry-leading levels (<2%). Experiences revenue grew 8% YoY, comfortably beating expectations despite headwinds from Epic Universe. The beat was driven by both healthy volume and increased per cap. We expect this momentum to carry through the remainder of the quarter. Full-year EPS guidance raised to $5.85, 17% YoY growth, but stopped short of reaffirming prior “double-digit EPS growth” guide for FY26, not helping reinforce investor confidence. The hesitation is understandable given upcoming investment areas (e.g., launch of new cruise ships, ESPN SVOD launch, int’l DTC growth), but without clearer indication, we expect the stock to remain range-bound in the near-term."

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