Morgan Stanley Believes the Best Is Yet to Come For Disney
Last month, Disney CEO Bob Iger took a victory lap after the Walt Disney Company delivered a FY2024 earnings report that sent the company’s stock skyrocketing.
Buoyed by a historic year at the box office and an amazing turnaround in streaming, Disney beat Wall Street’s expectations and laid a coherent path for coherent profitability moving forward.
For Iger, November’s earnings report culminated his two years of work since returning to the helm of Disney. Over that span, he saw the company’s stock price slide, a disastrous 2023 at the box office, two proxy battles, and a public feud with the governor of Florida.


Photo: Deadline
Despite the hurdles, Disney emerged on solid footing and was well-positioned to enter a new era in company history.
Disney Experiences Lagged Behind
While Disney’s 2024 earnings report was strong overall, Disney Experiences lagged behind the rest of the company, delivering softer results than many expected.


Disney
Despite the lackluster margins, it is clear now that Wall Street is not concerned.
Morgan Stanley Believes in Disney’s Future
Today, Morgan Stanley announced that the Walt Disney Company is its top investment pick.
According to a report from Investing.com, Morgan Stanley believes that Disney’s theme park and cruise business will drive growth in the coming years.


Photo: Disney
The firm expects Disney Experiences to deliver operating income growth of 6-8% in fiscal year 2025 and high-single-digit growth in fiscal year 2026.
“We believe achieving this guidance is not fully priced into current DIS shares, as Disney’s scaled investments at its Experiences segment offer durability in the growth outlook that warrants a healthy multiple to the broader market,” they wrote.


Photo: Disney
As Morgan Stanley notes, Disney has announced a ton of new projects for Walt Disney World, Disneyland, and its parks around the world. With the company committed to investing in its parks, Wall Street (and Disney) seems to believe guests will continue to turn out in droves.


Photo: Disney
By the look of things, the best is yet to come for The Walt Disney Company.