Disney can see big earnings growth ahead that will power the stock higher, says Morgan Stanley
Walt Disney could see strong earnings growth if current macroeconomic trends continue, according to Morgan Stanley. Morgan Stanley raised its price target to $140 per share from $120 and kept its overweight rating. The firm’s forecast calls for about 20% upside from Friday’s close. “If the macro backdrop remains healthy, we see Disney generating healthy double digit adj. EPS growth in the years ahead. Thanks to growth in its Experiences and Streaming businesses, it is poised to have rebuilt its pre-pandemic earnings base and hit new heights by FY27,” analyst Benjamin Swinburne said. DIS YTD mountain Disney stock in 2025. Swinburne also pointed to promising growth from Disney’s streaming business as a potential boon for the stock. “Disney has already made the pivot in its media earnings base, with growth in streaming (DTC) and content sales (CS & L) now more than offsetting a flattish ESPN (Sports) and declining Linear Entertainment segment,” Swinburne said. “Following its pivot to streaming, the impact of the pandemic, and cont’d cord-cutting, Disney has been rebuilding its earnings base, a project nearly complete thanks to strong Experiences growth and the emergence of streaming as a profit center,” he added. Shares have ticked up about 5% in 2025. Swinburne’s price target change comes ahead of Disney’s fiscal third-quarter report, due Wednesday before the bell.
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