March 25, 2024

Barclays has upgraded their rating for The Walt Disney Company (NYSE:DIS) from Equal Weight to Overweight and increased their price target for the company from $95 to $135. This news resulted in a more than 2% intra-day rise in Disney’s shares.

Barclays analysts believe that positive estimate revisions for Disney are only just beginning, and this trend will continue to drive valuation further. They also note that the recent news coverage around Disney, particularly in the lead-up to the proxy vote, has positively impacted investor sentiment since the last earnings announcement and is expected to continue benefiting the stock in the near-term.

Expressing optimism, Barclays says the current period of earnings stabilization, influenced initially by tactical benefits from last year’s strike, is predicted to yield more substantial results. They foresee that Disney’s ongoing efforts to turn things around will begin to significantly impact financial results starting next year.