Investing.com -- Walt Disney Company (NYSE:DIS) retained its "Buy" rating and a price target of $140 from BofA Global Research, as it navigates uncertainties in fiscal 2025. Disney's first-quarter earnings are expected to face headwinds from pre-opening cruise ship costs, hurricane impacts, and soft NBA ratings.
Analyst at BofA said “many unknowns currently hard to quantify” as it noted the magnitude of the impact of the LA fires.
“We expect DIS to address likely costs related to the shut down of Venu on the upcoming earnings call,” analyst added.
However, BofA sees long-term strength in Disney's premium intellectual property, iconic theme parks, and its sports brand ESPN. Near-term catalysts include profitability improvements in direct-to-consumer streaming, a reacceleration in Parks revenue, and a strong film slate, including Moana 2 and Mufasa: The Lion King.
The brokerage maintained FY25 earnings per share estimates at $5.36 and sees Disney as well-positioned for long-term growth, with key opportunities in DTC investments and sports broadcasting expansions.