From Nasdaq: 2024-04-11 18:03:50

The Dow Jones Industrial Average saw a 5.6% gain in the first quarter, with Walt Disney Company leading with a 34.9% return. Bank of America maintained a “Buy” rating for Disney stock with a price target of $145, citing impressive park performance and potential income growth in Q2.

Disney emerged victorious in a costly proxy battle, refusing activist investor Nelson Peltz’s board seat bid. Since November, Disney shares rose by almost 26%. With a market cap of $214.9 billion, Disney offers global recognition and competes in online streaming.

Disney reinstated a $0.30 dividend last year and increased it by 50% to $0.45 in February. At 2.43 times sales and a forward P/E of 25.17x, Disney trades cheaper than NFLX and its 5-year average. Fiscal Q1 earnings report showed revenue growth and cost savings strategies.

Analysts predict at least a 20% rise in EPS for Disney in fiscal 2024 and a profit of $4.66 per share, increasing to $5.57 per share in fiscal 2025. Consensus ratings on DIS are a “Moderate Buy” with a price target of $124.33. The high target of $145 suggests a potential 23.7% rally.



Read more at Nasdaq: Should You Still Buy the Best Performing Dow Jones Stock of Q1 2024?