UBS Reiterates Buy Rating on Walt Disney (DIS) Following Q4 Print

UBS analyst John Hodulik reiterated a Buy rating and $138.00 price target on Walt Disney (NYSE: DIS).

The analyst commented, "Disney's consolidated F4Q results were largely in line, inclusive of better profits at the Entertainment and Sports segments but lighter Parks. Domestic Parks revenues grew 6% and OI increased 9% vs. Street's 7%/24%. While competition from Epic Universe was acknowledged, management didn't sound the alarm bells on a parks slowdown with results coming in line with the prior segment outlook. Guidance was also maintained for HSD operating income growth at Experiences in F26 (UBSe 9%, incl. higher one-time cruise costs and the ~3 month delay for the Adventure ship. Commentary was bullish on the cruise business overall with utilization in line with historical levels despite the ~60% increase in capacity (we estimate a ~4% tailwind to Experiences OI in F26). On the content side, management expressed confidence in the slate for F26 across film (Mandalorian and Grogu, Toy Story 5, Avengers Doomsday) and TV (Scrubs reboot, Taylor Swift content) and noted user generated AI capabilities would be incorporated into Disney+, providing a new avenue to leverage franchise IP and drive engagement. Figures were not disclosed but ~80% of ESPN DTC subscribers are taking the ultimate bundle and the platform is bringing in a new cohort of advertisers."

For an analyst ratings summary and ratings history on Walt Disney click here. For more ratings news on Walt Disney click here.

Shares of Walt Disney closed at $107.61 yesterday.

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