Investing.com — Walt Disney The company (NYSE: ) maintained its “Buy” rating and $140 price target from BofA Global Research as it navigates the uncertainties of fiscal 2025. Disney’s first-quarter earnings are expected to face headwinds due to pre-opening cruise costs, the impact of hurricanes, and soft NBA ratings.
A BofA analyst said there are “a lot of unknowns that are hard to quantify right now” as he noted the magnitude of the impact of the LA fires.
“We expect DIS to address the likely costs associated with closing Venu on the upcoming earnings call,” the analyst added.
However, BofA sees long-term strength in Disney’s premium intellectual property, iconic theme parks and its ESPN sports brand. Short-term catalysts include profitability improvements in direct-to-consumer streaming, a rebound in Parks revenue and a strong slate of films, including Moana 2 and Mufasa: The Lion King.
The brokerage maintained its FY25 EPS estimate at $5.36 and sees Disney as well positioned for long-term growth, with key opportunities in DTC investments and sports broadcasting expansion.
