Wells Fargo Believes the Future of Disney is Bright
With just over a month to go until The Walt Disney Company presents its FY25 earnings, Bob Iger and his team have gotten some good news.
Wells Fargo has resumed coverage of Disney, assigning the stock an “Overweight” rating and a $159 price target. For reference, the stock closed yesterday at $112.73.
Photo: Disney
“We think Disney’s assets are growing and maturing, creating more predictability in EPS upside that will engender a rerating,” the bank said.
Photo: Disney
Looking ahead, Wells Fargo identified succession as the “final” hurdle for long-term investors. Prognosticating, the bank expects that Disney will have “solid execution and a near-term conclusion on succession.”
Disney Experiences Will Lead the Way
Surveying Disney’s business, Wells Fargo is particularly bullish on Disney Experiences, which it believes will see continued growth in operating income.
Photo: Disney
Specifically, the bank identified the Disney Cruise Line as an area where growth can be projected.
Turning to Disney’s other core units, Wells Fargo believes that the company’s streaming unit will continue to improve its margins, while noting that ESPN is no longer the ticking time bomb it once was.
Photo: ESPN
A Feather in Bob Iger’s Cap
While Bob Iger knows that he will have to answer tough questions about Disney’s box office performance and its recent foray into a political minefield, by and large, the CEO has every reason to be proud.
Photo: Deadline
The Walt Disney Company is back on solid ground and looks ready to grow in exciting ways.
As always, be sure to check back with MickeyBlog. We will continue to update you on all the news coming out of the Walt Disney Company.
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