Morgan Stanley Initiates Coverage on Walt Disney (NYSE:DIS)

Equities research analysts at Morgan Stanley began coverage on shares of Walt Disney (NYSE:DIS) in a research report issued to clients and investors on Tuesday. The firm set an “overweight” rating and a $135.00 price target on the entertainment giant’s stock. Morgan Stanley’s price target points to a potential upside of 28.97% from the stock’s current price.

Several other research firms also recently commented on DIS. Raymond James Financial reiterated a “market perform” rating on shares of Walt Disney in a research report on Friday, November 14th. Guggenheim reaffirmed a “buy” rating and issued a $140.00 target price on shares of Walt Disney in a report on Friday, November 14th. KeyCorp reiterated a “sector weight” rating on shares of Walt Disney in a research note on Friday, November 14th. Barclays restated an “overweight” rating on shares of Walt Disney in a research report on Monday. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Walt Disney in a research report on Monday, December 29th. Eighteen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Walt Disney presently has an average rating of “Moderate Buy” and an average target price of $135.40.

Walt Disney Stock Down 7.2%

DIS opened at $104.68 on Tuesday. Walt Disney has a one year low of $80.10 and a one year high of $124.69. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.65 and a current ratio of 0.71. The stock has a market capitalization of $186.88 billion, a P/E ratio of 15.26, a price-to-earnings-growth ratio of 1.58 and a beta of 1.43. The business’s 50-day simple moving average is $110.74 and its 200-day simple moving average is $113.00.

Walt Disney (NYSE:DIS) last released its quarterly earnings results on Monday, February 2nd. The entertainment giant reported $1.63 EPS for the quarter, topping the consensus estimate of $1.57 by $0.06. The company had revenue of $25.98 billion for the quarter, compared to analyst estimates of $25.54 billion. Walt Disney had a return on equity of 9.37% and a net margin of 13.14%.The firm’s revenue was up 5.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.40 earnings per share. Analysts anticipate that Walt Disney will post 5.47 EPS for the current year.

Institutional Trading of Walt Disney

Institutional investors and hedge funds have recently made changes to their positions in the stock. Copeland Capital Management LLC acquired a new stake in Walt Disney in the 3rd quarter worth about $25,000. Strengthening Families & Communities LLC purchased a new position in shares of Walt Disney during the 3rd quarter worth about $29,000. JPL Wealth Management LLC acquired a new stake in shares of Walt Disney in the third quarter worth approximately $30,000. Pilgrim Partners Asia Pte Ltd purchased a new stake in Walt Disney in the third quarter valued at approximately $33,000. Finally, Bare Financial Services Inc grew its holdings in Walt Disney by 48.5% in the third quarter. Bare Financial Services Inc now owns 291 shares of the entertainment giant’s stock valued at $33,000 after purchasing an additional 95 shares during the period. 65.71% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Walt Disney

Here are the key news stories impacting Walt Disney this week:

• Positive Sentiment: Q1 results beat consensus: Disney topped EPS and revenue expectations, driven by box-office hits and improving streaming margins; the quarter reinforced the company’s recovery narrative. Read More.
• Positive Sentiment: Streaming profitability improved: Disney reported record streaming profit aided by price increases, a key long-term value driver if subscriber trends stabilize. Read More.
• Positive Sentiment: Parks remain a cash engine: Experiences posted record revenue and generated the majority of operating income, offsetting weaknesses elsewhere. Read More.
• Positive Sentiment: Capital returns accelerating: Management signaled meaningful buybacks and maintains a dividend, supporting shareholder returns as leverage stays low. Read More.
• Neutral Sentiment: CEO succession nearing a decision: Reports say the board is close to naming parks chief Josh D’Amaro as CEO — that could reduce uncertainty once official, but investors are focused on who will lead strategy post-Iger. Read More.
• Neutral Sentiment: Management tone: Bob Iger emphasized momentum and offered transition advice; comments aim to reassure but don’t eliminate near-term operational risks. Read More.
• Negative Sentiment: Tepid near-term guidance: Disney issued modest guidance for the fiscal quarter ahead, citing international visitation headwinds and higher pre-opening and cruise costs — that weaker outlook pressured the stock despite the beat. Read More.
• Negative Sentiment: International tourism slowdown: Lower foreign visitors to U.S. parks (notably from Canada and other markets) is cited as a headwind to Experiences growth. Read More.
• Negative Sentiment: YouTube TV carriage dispute hit: Disney disclosed a roughly $110M operating-income impact from a blackout, highlighting distribution risks that can dent short-term profitability. Read More.
• Negative Sentiment: Longer-term IP and legal risks flagged: Analysts point to expiring copyrights, AI-driven piracy and possible lawsuits as material risks that could pressure future content monetization. Read More.

Walt Disney Company Profile

The Walt Disney Company (NYSE: DIS), commonly known as Disney, is a diversified global entertainment and media conglomerate headquartered in Burbank, California. Founded in 1923 by Walt and Roy O. Disney, the company grew from an animation studio into a multi‑national entertainment enterprise known for iconic intellectual property and family‑oriented storytelling. Disney’s operations span film and television production, streaming services, theme parks and resorts, consumer products, and live entertainment.

On the content side, Disney produces and distributes feature films and television programming through a portfolio of studios and labels that includes Walt Disney Pictures, Pixar, Marvel Studios, Lucasfilm and 20th Century Studios, along with broadcast and cable networks such as ABC, FX and National Geographic.