Walt Disney’s (DIS) top- and bottom-line trends indicate continued growth in adjusted earnings per share of more than 20%
in fiscal year 2025 and beyond, Morgan Stanley said in a note Thursday.
The investment bank said Disney’s stronger-than-expected fiscal Q1 results, outlook for lower-than-expected direct-to-consumer segment losses in fiscal Q2, and $3 billion share repurchase program suggest an upward revision to its adjusted EPS growth forecast of $4.60 for fiscal year 2024.
“The earnings mix continues to shift towards higher multiple earnings led by Experiences and Streaming [segments],” Morgan Stanley said.”Continued outperformance in Parks and Streaming can help push shares towards our $135 bull case.”
Morgan Stanley reiterated its overweight rating on the stock with a price target of $110.
Disney shares climbed 12% in recent Thursday trading, topping Morgan Stanley’s price target.