What Analysts Think of Disney Stock Ahead of Earnings

The Walt Disney Company (DIS) is scheduled to report fiscal second-quarter results before the opening bell Wednesday, and analysts are largely bullish on the media and entertainment giant’s stock.

Five of the seven analysts tracked by Visible Alpha who cover Disney rate the stock as a “buy,” while the other two dub it a “hold.” Their average price target is $120, a nearly 30% premium to the stock’s closing level Friday, suggesting analysts think shares will reverse their roughly 19% decline since the end of February.

The conglomerate is expected to report second-quarter revenue of $23.17 billion, up 5% year-over-year, while adjusted earnings per share are expected to have declined by a penny to $1.20.

Analysts Expect Solid Q2 But Warn of ‘Recession Risk’ Ahead

UBS analysts recently reiterated their “buy” rating in a note previewing Disney’s earnings, but trimmed their price target to $105 from $130. The analysts said they expect the firm’s second quarter to “reflect resilient demand across the parks, initial upside from the new cruise ship and solid sports advertising,” but see “recession risk” in the second half of the fiscal year that could hit advertising revenue and park visits.

Last quarter, Disney’s revenue and profit topped estimates, but it reported a slight drop in Disney+ subscribers to 124.6 million, and said it expected another “modest decline” in the second quarter. Visible Alpha consensus calls for 123.7 million Disney+ subscribers at the end of the second quarter.