Disney (DIS) Stock Forecast & Price Target

Walt Disney is projected to experience a revenue growth rate increase of 40-60 basis points annually over the next decade, primarily due to changes in its operational structure related to the ABC broadcast network, which is expected to positively impact its trading multiples. Forecasts indicate that total revenues will rise by 4.6%, reaching $95.6 billion in FY25, bolstered by significant growth in television operating income, which increased 22% year-over-year to $3.6 billion in FY24 and is expected to continue growing by 14% in FY25 and 15% in 2026. Additionally, estimates for adjusted earnings per share suggest an increase, with projected EPS rising from $1.01 to $1.02 in FY25 and from $6.43 to $6.55 in FY26, highlighting strong financial performance and profitability.

The analysts express a negative outlook on Walt Disney’s stock primarily due to anticipated disappointing growth in its direct-to-consumer (DTC) segment and declining revenues from its Linear Networks, particularly expecting a significant 11% year-over-year decline in revenue from the ABC network in FY25. Additionally, risks are highlighted from faster linear TV disconnects, which could negatively affect ESPN's ratings and revenues, alongside potential impacts from economic downturns on park attendance and occupancy rates. Furthermore, technological disruptions, particularly from developments in generative AI, raise concerns about increasing operational costs and risks associated with owning ABC, potentially leading to greater valuation volatility for Disney.