DIS - Disney Stock Has 15% Upside According to 1 Wall Street Analyst
2024-03-27 10:09:06 ET
Share prices of Walt Disney (NYSE: DIS) have staged a partial recovery over the past few months, although the entertainment juggernaut still faces myriad challenges. Given the stock movement, UBS issued updated guidance Wednesday morning, maintaining its optimism on the stock and reiterating its buy rating. It boosted its price target to $140. That new price target represents an upside over the next 12 months or so of about 15%.
UBS said it is confident that Disney can drive free cash flow generation higher over the next few years. Driving the price target bump is the expectation that Disney will produce $9 billion in free cash flow this year and $14 billion in free cash flow in 2026. This will allow the company to raise its dividend, buy back shares, and make growth investments.
Hitting those targets will require some heavy lifting on Disney's part. The company still depends on its linear TV business for a big chunk of its profits, and its film studio business has been struggling with lackluster releases. Disney's Marvel movies used to be a sure thing, but that's no longer the case.
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Disney Stock Has 15% Upside, According to 1 Wall Street Analyst