Disney Analyst Highlights Streaming, Theme Parks And 'Portfolio Durability'

Walt Disney Company DIS may have bright days thanks to theme parks and streaming, according to Rosenblatt’s Barton Crockett.

The Disney Analyst: Crockett maintains a Buy rating on Disney and raised the price target from $122 to $135.

The Analyst Takeaways: Disney's growth looks "do-able" and the stock is "buyable," Crockett writes in a new investor note.

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The new $135 price target assumes Disney shares can trade closer to a forward price-to-earnings ratio of 22x, instead of the near 10% discount to the market average Disney stock has traded at in recent history.

"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," Crockett said.

Disney's confidence in high single-digit earnings per share growth in 2025, and double-digit growth in 2026 and 2027 appears aggressive, Crockett says. But it could become a reality, he adds, after hearing more details from new CFO Hugh Johnson last week.

Disney remains focused on its theme park segment and cruise lines, which will continue to attract guests in future.

Disney's DTC segment, which includes Hulu, Disney+ and ESPN streaming platforms, could also be a key growth element, Crockett said.

The analyst said cross-promotion reduced churn and Disney+ is enjoying a lift in subscribers thanks to several hit films. The release of movies like "Deadpool & Wolverine," "Inside Out 2" and "Moana 2" on Disney+ could help boost subscriber growth ahead.

Crockett says DTC streaming is “the leading driver of segment profit growth in F2026.”

Price Action: Disney stock is down 0.58% to $112.41 on Monday versus a 52-week trading range of $83.91 to $123.74. Disney stock is up 24% year-to-date in 2024.

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