Walt Disney Stock (DIS:NYE) Analyst Upgrades on Iger return

STA Research
by: STA Research
Walt Disney Stock

Walt Disney Stock Forecast

Moffett Nathanson upgraded Walt Disney stock to Outperform from Market Perform. He maintained the 12-month target of $120 per share.
The analyst bases the upgrade on the company bringing back former CEO Bob Iger. Nathanson states “We applaud Disney’s Board for the courage to make this change”. Nathanson expects Bob Iger to do two things. These are to leverage the company’s existing strengths and drive value in this area.

Analysis of the Walt Disney Stock:

The average analyst target price for the Walt Disney Company over the next 12 months is USD 122.63. Based on 21 analysts covering the company.
Strong Buy is the typical analyst recommendation for the Walt Disney Company. Walt Disney stock has a bullish outlook according to Stock Target Advisor’s research. Based on 10 positive and 4 negative indications.
The stock price of the Walt Disney Company was USD 91.80 at the most recent close. The stock price of Walt Disney Company has moved by -3.38% in the last week, -6.89% in the last month, and -40.39% in the last year.

Walt Disney Company About (DIS:NYE)

The Walt Disney Company runs a global entertainment business along with its subsidiaries. It has two operating segments which are:
  • Disney Media & Entertainment Distribution
  • Disney Parks, Experiences and Products
The company operates television broadcast networks under the names of:
  • ABC
  • Disney
  • ESPN
  • Freeform
  • FX
  • Fox
  • National Geographic
  • Star brands.
Studios that make motion pictures under the banner of:
  • Walt Disney Pictures
  • Twentieth Century Studios
  • Marvel
  • Lucasfilm
  • Pixar
  • Searchlight Pictures
It also produces and distributes films and episodic television content. Additionally, it provides theatrical:
  • Home Entertainment,
  • Music Distribution Services
  • The staging and licencing of live entertainment events
  • Post-production services from Industrial Light & Magic and Skywalker Sound
  • Direct-to-consumer streaming services via Disney+, Disney+ Hotstar, ESPN+, Hulu, and Star+.
It also sells and licences:
  • Movie and television content to third-party
  • Subscription video-on-demand services.
The business also runs theme parks and resorts like:
  • Walt Disney World Resort in Florida
  • Disneyland Resort in California
  • Disneyland Paris
  • Hong Kong Disneyland Resort
  • Shanghai Disney Resort
  • Disney Cruise Line
  • Disney Vacation Club
  • National Geographic Expeditions
  • Adventures by Disney
  • Aulani, a Disney resort and spa in Hawaii
It licenced its intellectual property to a third party for Tokyo Disney Resort. It provides services like Disney Vacation Club. Additionally, it creates and publishes:
  • novels
  • comic books
  • periodicals

    It sells branded items through retail, online, and wholesale businesses.


Fundamental Analysis of DIS’s Stock:


Positive Fundamentals:


High market capitalization

This organization is among the top quartile and is one of the biggest in its industry. These businesses are typically more reliable.

Superior returns on risk

Walt Disney Stock has outperformed its sector rivals on a risk-adjusted basis. Over the course of at least a 12-month holding period in the top quartile.

Low volatility

For a hold duration of at least 12 months, Walt Disney Stock yearly returns have been stable. Constant when compared to peers in its industry. They are in the top quartile. Although stability is desirable, it can also restrict returns.

High dividend yield ratio

Walt Disney Stock has outperformed its industry rivals over the past 5 years. For a hold duration of at least 12 month. It is in the top percentile in terms of average annual dividend returns. For investors seeking high income yields, this could be an excellent purchase, especially if it is excelling on a total return basis.

Excellent return on equity

The management of the company has outperformed its competitors in terms of return on equity over the last four quarters, ranking it in the top quartile.

Superior capital efficiency

In the last four quarters, firm management outperformed its counterparts in terms of return on invested capital, putting it in the top quartile.

Positive cash flow

The last four quarters saw positive total cash flow for the organisation.

Positive free cash flow

The last four quarters saw the company generate positive total free cash flow.

Superior growth in earnings

In the preceding five years, Walt Disney Stock profits growth was in the top quartile for its industry.

Superior growth in revenue

Compared to its industry, Walt Disney Stock revenue growth over the previous five years has been in the top quartile.

Negative Fundamentals:


Total returns that are below the median

In terms of annual average total returns during the previous five years, the company lagged behind its competitors.

Excessive in comparison to wages

Walt Disney Stock is trading above the sector median and at a premium to its peers in terms of price to earnings.

Overpriced based on cash flow

On a price to cash flow ratio, Walt Disney Stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.

Overpriced based on free cash flow

On a price to free cash flow basis, Walt Disney stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.

Conclusion of Analysis

The Fundamental analysis for Walt Disney stock is a score of 7.1 out of 10. Whereby the stock has got a Bullish outlook.

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