Bank of America analysts have repeated their ‘Buy’ rating on Walt Disney Co (NYSE:DIS, XETRA:WDP) with a price objective of $125, noting expectations for fiscal 2026 earnings to be weighted toward the second half of the year.
Shares traded down 1% at about $100 in the early afternoon on Tuesday.
The bank projects that Disney’s second fiscal quarter will “reflect several moving parts in the underlying business,” with particular focus on the company’s Experiences segment.
The analysts highlighted that attendance challenges, especially from international visitors at domestic parks, and pre-opening costs for cruise ships are likely to weigh on results.
At the same time, the firm said that recent rises in fuel prices “do not appear to have a meaningful headwind to results,” as Disney hedges part of its fuel exposure and operates a more fuel-efficient fleet that uses alternative energy sources. Bank of America forecasts roughly 5% revenue growth in Experiences for the quarter.
Sports operations are expected to show a stronger second-half performance, supported by Disney’s new NBA media rights deal.
The firm also highlighted Disney’s new leadership, namely, new CEO Josh D’Amaro and Dana Walden, appointed Chief Creative Officer. Bank of America anticipates that the executives will outline “high-level perspectives on the business and long-term strategic priorities” during Disney’s earnings call in early May.
They believe it is likely too soon for major changes, but pointed to historical precedent, noting that Bob Iger acted decisively in his early months after succeeding Michael Eisner. The firm added that “storytelling and creative excellence remain the core of the Disney brand” and are expected to remain central under new leadership, alongside early signs of “tighter integration across business segments.”
For Q2, Bank of America slightly lowered its revenue estimate to $24.73 billion, reflecting higher eliminations related to Fubo, while maintaining an operating income projection of $4.37 billion and an EPS estimate of $1.44.